Fibonacci Trading MasterClass | Gaurav Khullar | Skillshare
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25 Lessons (1h 58m)
    • 1. Introduction

      8:33
    • 2. Who was Fibonacci?

      2:03
    • 3. Fibonacci sequence and Golden ratio

      3:07
    • 4. How are Fibonacci ratios derived?

      9:07
    • 5. Fibonacci Retracements- Intro

      12:32
    • 6. How to run Retracement levels?

      6:44
    • 7. Should the price touch the retracement levels?

      1:51
    • 8. Simplest forms of trading using Fibonacci

      1:31
    • 9. Is Fibonacci the holy grail of trading?

      3:42
    • 10. Fibonacci Extensions

      8:29
    • 11. How Fibonacci Extension level is calculated?

      1:50
    • 12. Reverse extensions

      3:46
    • 13. Fibonacci Projections

      3:53
    • 14. Logic behind projection levels

      2:36
    • 15. How to run Fibonacci Projections

      3:43
    • 16. Projection Example(Lupin Stock)

      1:24
    • 17. Projection Example USD/CAD

      1:15
    • 18. Projection Limitations

      2:25
    • 19. What is Fibonacci convergence?

      2:12
    • 20. How Fibonacci Convergence works?

      2:32
    • 21. Convergence Tips

      1:40
    • 22. How to run correct multiple retracements?

      4:25
    • 23. Step by Step Convergence example EUR/USD

      3:04
    • 24. Fibonacci convergence trading setup

      13:38
    • 25. Fibonacci- RSI Trading Setup

      11:52
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About This Class

Most indicators are lagging indicators and work on past price action. In this course, you will learn an important tool in trading called “Fibonacci”
The Fibonacci retracement is used to forecast levels which the price is very likely to correct itself during a trend and hence usually used as entry levels. If you are missing this important tool in your trading then welcome to this Fibonacci trading Masterclass where you will learn this important tool from beginner to experienced level in a step by step manner.

Course Structure-

  • Fibonacci Introduction

  • Who was Fibonacci?

  • Fibonacci sequence and Golden Ratio

  • [OPTIONAL Lecture] Fibonacci Ratios in Nature

  • How Fibonacci Ratios are derived?

  • Swing Highs and Lows

  • Fibonacci Retracements Intro

  • How to run Fibonacci retracement levels?

  • Should price touch the Fibonacci Retracement levels?

  • Simplest form of Fibonacci trading

  • Is Fibonacci the holy grail of trading

  • Fibonacci Extensions

  • How Fibonacci extensions are calculated?

  • Fibonacci – Reverse Extensions

  • Fibonacci Projections

  • Logic behind Fibonacci Projections Levels

  • How to run Fibonacci Projections

  • Projection Example 1- Lupin Stock

  • Projections Example 2- USD/CAD

  • Projection Example 3- EUR/USD

  • Projection Limitations

  • Fibonacci Trader Types

  • What is Fibonacci Convergence?

  • How Fibonacci Convergence works?

  • Fibonacci Convergence Tips

  • How to run Correct Multiple Fibonacci Retracements ( Fibonacci Clusters)

  • Step By step Fibonacci Convergence example-EUR/USD

  • Step By step Fibonacci Convergence example-SPY-ETF

  • Fibonacci Convergence Trading setup

  • Fibonacci- RSI Trading Setup

Transcripts

1. Introduction: Hello, friends. Welcome to the scribble. Not you. Trading masterclass. My name is Goro Cooler, and I will be your instructor for this course. I'm a professional banker and stock market trader with years of experience in the field, off trading, banking and finance. First, if you are in the market for some time, then you must have realised net markets occasionally reverse for no apparent reason. There is no good or bad news. There are no previous support or a distance levels or any other factor that could act as a trigger to reverse but still market. Do a reversal. Friends. Most often these occasional reversals takes place at important Fibonacci levels. And if you are missing this important tool in your trading arsenal, then welcome to this Fibonacci trading masterclass. Where Ivan sure you that markets are not that mysterious. If you have this important tool called Fibonacci in your trading it Lexi another instance. Friends. You must have seen that during an uptrend or downtrend retracement that is movement off price in a positive direction off. The current trend do happen, but many traders don't know when to take the position or do not have any clue upto where this retracement will hold or yours. Secondly, he wanted to predict the retracement, correct? They failed to make out. If the trend will continue or not. They have no clue about this. So, friends, What if you could predict these replacements correctly with high probability off success and cash on these retracement? Stow on extra profits. Yes, Fibonacci Tool is one such tool, and this is regarded as one of the most powerful tool in treating an interesting even Algeria Trace mint is used to forecast levels. Who is the price is very likely to correct itself during a trend and has Julie used as entry levels. After seeing both these examples, you must have realized the importance of heaven. Archie in trading. So I welcome you all to this Fibonacci trading masterclass, where you will master the stool and take your trades more confidently and thereby reducing losses. Let's see what you will learn in this course and what makes this course different from others in the marketplace. In this court, you learn how to find the future market turning points After mustering food naci, you will be able to predict market reversals with high poverty, French many traders are full of doubts while using proven Archie, and this course will help you applying the Fibonacci analysis with confidence and clear your dolls in a stir. Best of manner, most often in training sessions. I find trailers confused with which swings to select to run the Fibonacci. This course will help you in selecting correct swings. Two. Wonderful energy. You will also learn how to find stronger support over the distance levels and thereby increasing the probability of success in your prayers. France multiple retrace mints and for a variety has always been difficult to grasp why new Fibonacci traders and even experience trailers run over from my people. Fibonacci. Retracement. This course will simplify the process. And you villain. What's the correct, easy and less time consuming way to run these types off? Fibonacci Retracement. You will also learn how to combine Fibonacci with other tools and create high probability trading setups. This course will help you in identifying clear and three wines targets and stop losses, and us we will have clear trading rules. You will also learn how to filter between the trades. Data is knowing which trades to leave and which ones to under since we brought. She works in multiple markets and multiple time frames. You can apply the concert flown in any market your training beach talks, commodities for X, cryptocurrencies or any of the monkey. This course will take you from business level who export level in a step by step manner, and thus, even if you are new to operating, you can take this course so friends. By the time you finish this course and our this important tool in your training tool kit, you'll add a new dimension to your printing. Discourse is perfect for first traders who want to wait for a variety in their trading tool set, and those who want to stop guessing and new this. They're hard on Capitol on substandard trading setups and strategies, then traders who wants to anticipate quality trade setups. Also traders who want to find market turning points that others don't see and those who wants to follow simple set off rules and directions. Let's now have a look at the contents off the scores and brief and what all you are going to learn in this nicely crafted stamp buster Frivolity, trading masterclass. The 1st 3 lectures will be on basics over Barachie, and we even have an overview how this all started. And what is the importance of Fibonacci not only in financial markets but also ingenuous as a whole. So in first lecture, we will briefly see who wants with Nazi and how the city's evolved. Next, we will have a look at food naci sequence and golden ratio. Then we will learn the importance of Fibonacci offered financial markets and seeds importance in nature. After finishing overview, we will learn how different re shoes off, if not your calculator, and what ratios or levels are important in financial markets. Then we will learn about freeing highs and laws. Friends identifying swings is the base off Fibonacci. If you fail to identify swing lows and highs, you can't master philology. In this lecture, we will learn all about swing lows and highs. Then we will start learning important building blocks of Fibonacci trading. The 1st 1 is replacements. In this lecture, we will learn Fibonacci retracement in detail and learn how to run correct redress mints. Along with selecting correct swings. In this lecture, we will see many practical examples which will make the learning easy and interesting. Next we will learn second Willing Law. Daddy's extensions, then Ruland, third building block, that is Fibonacci projections. After learning basic building blocks and how to run them correctly, we will then learn about different types of Fibonacci traders and also identify which type of trader you are and which were not. Your trading style suits you. Next. We will learn an important concept in Fibonacci, which more strata sphere that is. Convergence. French convergences helps in identifying stronger support and resistance levels. We learned this concept using practical examples and master this easy after this woman stock trading setups. First with the lone Fibonacci Artists trading setups. This is a set of four in Friday, and swing creators who works on shorter time frames does it short and sweet treating set up with high success rate. Then we will see Fibonacci Convergence trading set up along with trading lose. We will also see practical examples, which will help in grasping the steps easily. So friends and roll toe the course now and add a new dimension to your training. Hope to see you in the opening lecture 2. Who was Fibonacci?: Hello, friends. Welcome to this lecture, friends. Fibonacci Analysis is basically the study off identifying potential support and resistance levels in the future. Based on past price action. This analysis is based on discoveries off one off the greatest mathematician off Middle Ages, known as Leonardo Pisano, or better known as Fibonacci. In the only 12 hundreds. After traveling Mideast and starting with Arab mathematicians, Fibonacci published his famous book, Liberal Baki. In this book, he introduced for the first time at a big new medical system in the euro on the numbers of the used today that is 0123 up to nine. Before that, Europe used to use only Roman numerals apart from various other discoveries. What Fibonacci is most famous for is the discovery off a sequence of numbers, which are now known by his name, that is, from Naci Siri's. He officer certainly shoes off this number cities that helps in describing the natural proportions off thing in the universe, including price data. French, though the series is known by his name, but it's interesting to note that Phil Variety series was already known to Indians of a back in sixth century, but it was for Minotti, who introduced it to the rest for the first time. His discoveries proved that via nature around us are created in numerical sequence. His discoveries also pulled our market is not ask lt and as confusing as it looks from outside by the learnings, off philology cities and re shoes, traders discovered that disk yours is in fact an organized kills, which is deter mined by human emotions. 3. Fibonacci sequence and Golden ratio: welcome to this electric fence. In this lecture, you will learn what a Fibonacci sequences and also learn one of the important characteristics. Or we should see important product off Fibonacci series that is golden issue. So let's start friends. Fibonacci had great fascination for numbers, and he got his fame by discovery of the famous cities off numbers, which is known by his name. That is Fibonacci series. The city's has the property that the next number in the cities is obtained by adding the previous two numbers. The city's docks with zero and one and then go still, infinity. So the city's looks like this. Just notice that each time in the cities is the sum of its previous two terms. Ven weird zero and one. We get the next home, that is one no adding one and one vigor the next town that is to similarly, when we had to with one vigor the next Thomas Tree Vigor at five. Next home when we're 213 Similarly, Biggert here 13 2134 55 89 1 44 $2.3 and so on. Till Infinity Friends. What is most interesting thing about this number series is that there is a constant ratio found within the cities as it progresses towards infinity. In the relationship between the numbers in the series, you will find out a costumed ratio 1.61 80 scene, which is called the Golden Reissue. So if you just ignore the 1st 45 times done their terms after, these has a ratio of 1.600 between them. For example, when 55 is divided by 34 vigor the issue as 1.6176 Similarly, when you re wide 89 by 55 you get 1.6181 it And when you do wide 1 44 by 89 you get 1.6179 Similarly, eventually white to Doubletree by Wonderful For You will get 1.6180 And so on just tried only shield the rest of the numbers as an exercise and off. So the issue between them, though the series is simple. But what excites the scholar around the world? Is there the appearance off the cities and re issues around the universe, from nature to architecture to human Wordy Fibonacci series and re shoes can be seen everywhere, and financial markets are also not left untouched, as you will see in this course ahead. 4. How are Fibonacci ratios derived?: Hello, friends. Welcome to this lecture. In previous lecture, we already had a glimpse. Dad, Fibonacci numbers have some unique properties and can be seen in nature at very surprising on mysterious places. First, the world off of not you doesn't stop part of Nazi cities numbers and garland issue, but it has wide applications. In this lecture, let us move forward and open up the world off of natural issues. Friends from Banacci issues are in fact mathematical relationships expressed as ratios derived from five naci numbers. That is, if you observed on issues between various numbers and Fibonacci series, you will be amazed to see the power off immunology as an exercise just measured the ratio off any number. After first few numbers with a succeeding number, Just pause the video and have it right. That was due by 24 by 55. You will get the issue approximately 0.618 nor the white 55 by 89 here. Also, you got the result close to 0.61 it no divide. The next year that is 89 divided by 1 44 here. Also, you got approximately 0.600. As an exercise, you can try other pairs off Banacci sequence also and nor the results. If you are so carefully, you will see that the issue is almost constant. That is close to 0.600. Does you just see another feature off Fibonacci? That is, if any number is divided by succeeding number, we get a cost and ratio that is 0.61 it. Similarly, you had to do another exercise. Just measure the issue off alternate numbers. So if you do I 21 by 55 you will get the result approximately zero point tria toe. Similarly, if you find that issue of 34 divided by 89 you'll gather issue approximately 0.3 ato And if you find the issue off 55 by 1 44 Jewell Garda issue 01 tree Ato does. In this exercise, you notice dander Issue off of Nazi numbers after skipping one number is a constant issue that is zero point tria toe. Similarly, the issues are constant. If you skipped 23 and four numbers off the sequence, just try this as an assignment. French though there are many financial issues But some Fibonacci ratios are very important for parading something. Natural issues are very important, as historically, it has been seen that markets seem to perform in agreement with these with matching issues . So Friends asset There are many issues, but traders are most often concerned with following seven Fibonacci issues. The first is 0.236 or 23.6%. Level zero point tria two, or 38.2% level 0.61 There are 61.8% level. A 0.7 or six or sound E 816% level 1.272 or 1 27.2% level 1.61 in order 1 61.8% level. And lastly, we have who 0.6 20 or to 61.8% level. Now let us see how these important financial issues are derived. The first ratio that is 0.236 This issue is obtained by skipping two numbers of the Fibonacci ratios. Example. If you take 55 and then skip two numbers in the Fibonacci cities and take to deviltry and then take the issue of both these numbers that is 55 divided by potable tree, you will get to 0.26 approximately. Similarly, if you take the issue off 39 3 77 here, also, you will get the issue as 0.236 Approximately next issue is 0.2 year toe. This issue is obtained by squaring 0.600 or we consider deuce. Ratio is obtained by skipping one number off the sequence. Example. If you take 89 then skip one number in Fibonacci sequence and get through Doubletree and finally divide 89. But to Doubletree, Jewell got 0.32 Approximately similar leader issue of 1 44 and 3 77 is also 0.32 Approximately next important issue is 0.61 it France. This we have seen earlier. It is obtained by dividing any Fibonacci number by succeeding number normally after 30. So if you take the ratio of 89 1 44 Jewell Garda, result as 0.618 approximately similarly, the issue of 1 44 and two Doubletree also gives 0.618 approximately next week. Not your issue. Which trainers are entrusted in his 0.76. This is basically square root off 0.618 Next is 1.272 This is square root of golden ratio that is 1.618 Next is 1.618 This we have already seen in past lecture. It is our friend by the warning. Any number with this proceeding number. Example. When 1 44 is divided by 89 you got 1.618 on 3 77 when divided. What suitable tree here Also, you got 1.618 Next issue. We are who? 0.61 year. This issue can be obtained by a squaring the golden reissue that is squared off 1.600. Lastly, we have 50% or 0.50 Fibonacci level France 50% level is not really a Fibonacci issue, but it is used because it has been seen that once and Assad crosses 50% retracement level, then the asset has tendency to continue in same direction. That's more straight as uses important ratio. Also in that food. Not you, too. So with about discussion, you will notice that whole Fibonacci ratios are the wall we got on the golden issue. That is 1.618 Anything worse? That is. You know, 0.6 wondered. So power of golden issues realized by financial markets also. Now, let us have a look at Fibonacci to on you'll notice all these issues in your chart. I'm using free charting to from investing, not common. The scores not only is free to use, but it contains stocks and indexes off almost all countries around the world Does It will be easy for you to implement the strategies and stuff, mentioning this course with stocks and currencies irrespective of the country you belong. France. You must be seeing more issues like 3.604 point 236 shown by the Red Arrows. In this Defour from not you too. 3.600 level is obtained by adding to tow the golden ratio. Dad is 1.61 year last two and four point Putri six is often by cueing the golden issue. So friends there can be a number off of matching levels, but he s a trader, primarily focused on just someone from natural ratios which we already discussed in this lecture French. Another point to clarify is dark. You can see the tool with different in your charting platform, but the basic concept or levels in any charting platform you use the same hell. You can see two different ways off showing from Nazi tool one show of the food, 90 levels as a issues and other shows levels, as person did by before. You can, in fact change all these in settings, which is really easy. So don't get confused. You may sit a full Nazi levels in any of the two forms in your charting platform. 5. Fibonacci Retracements- Intro: Hello, Kearns. Welcome to this lecture. French Fibonacci Trading has three basic building blocks. Fosters Fibonacci Retracement. Second is 5 90 extensions and last is 15 90 Predictions. In this lecture, we will start with important concept off Fibonacci Retracement villain. What a retracement is and half of Nazi can help us in predicting the future movement of the marker so that stark friends, if you are creating or investing for sometime, then you must have observed that markets never move in same direction or in any particular pattern. Rise, in fact, really moves in one direction when the market is in uptrend. Most often there is price retracement before the store continues its rally upward. If you are new, creating and hearing the word retracement for the first time, then our retracement is a temporary reversal in the direction often assets prize that goes against the prevailing trend audience are it's a brief correction in price off desert. Similarly, no don't grant market first moved down and then retraces back for a brief period and then again resumed their downward journey. French, though you contradict the movement of the marker, but we have most often seen that in a strong trending market. The retracement are common. This is a four hour, you know, USD chart and you can see the currency pair is an uptrend here. And just notice this measure retracement which took place before the currency fear lose you . It's up. Ran. No, this is again, you know USD for our chart and notice this meteor downturn here also, you can notice there a media do trace mint took place had this region before the currency pair resumed its downward journey. Friends with these examples, one thing is clear that are traders can make him some money. If there is a way to predict this replacement that is approved which point of interest mint will take place before the previous trend resumes. Friends as a trader is under its amusing If you could find those levels from where the price reverses and resumed its journey upwards or downwards. Well, the answer to this question is yes, and from Nigeria, restaurants are one such levels. For reasons that are unclear, the Fibonacci levels seems to play an important role in the marker, just as they're doing the nature and can be used to deter mined key price action zones net cause in a sex price. Two rivers the direction of the prior trend is likely 20 new ones. The price off the asset has retraced toe. One of the retracement levels suffers from Nazi retracement levels are using training as possible support and resistance levels and most often these levels. You took great trading opportunities. The Jews Off Candlestick charts The application off of natural ratios in trading is gaining popularity as his most indicators are lagging indicators. Traders rely on 5th 90 years, one of the prominent tool to predict the future price movement and also high probability support and the distance films. First, thousands of traders all over the world did these levels as potential support and resistance is. And since large number off prayers are taken at these levels around the world, the movement off crisis often the negative and with these levels first, retracement reading is often considered better than recuperating because of the organized levels that Fukamachi to give to the traders. The support and distances are clearly in front off as compared to, but incorporating were traded is mostly confused with point of records and target levels. Prince from Nazi to clearly gives you the retracement levels so that you can learn your Prades accordingly. The main retracement levels used are 23 points exposure, 30 year point who person 50% 61.8% and 78.6% level. Out of these 61.8% level is an important level at which most readers take their trades. Normally it has been observed. But if the price causes 78.6% retracement level, then previous trend is assumed to be broken and traders cancel their positions in the prayers. Normally, conservative credo stick 50% as an important reversal level, but over the years I have seen 61.8% as an important level. And finally, if retracement goes past 78.6% retracement level, I consider previous friend is broken. Let's understand with the help of this example, so all this talk is an uptrend, and it starts to tracing back at point B. That is in simple words. Stock is correcting after point B. So if you run the Fibonacci tool from point A to point B, then it is seen that most often the star kicks supported either of the above Fibonacci levels that is stock antics. Support at around 23 foreign six Porter and food 90 level antics. Reversal at point C and then resumed its uptrend. Or the store can take support at around 38.2%. Food 90 level that is stock takes reversal at 20 and then resumes its biggest uptrend. Or the store can pick support at around 50% from 90 level. That is stock takes reversal at Point E and then resumes previous. A friend on the stock antics supported around 61.8% 4 months, a level that is stock picks reversal at Point F and then resumed its previous upturn. It is important to more that price generally takes reversal around these levels and not exactly at these levels. So please went in before around these levels when you are drilling so, friends, as you have seen from knotty levels, provide important support levels which creators can utilize to their profits and in fact, many traders daily use of Nazi who leave their profits. Friend. One question must be rising inside your mind. That is, it's OK. Food analogy has given us the levels, but there are five levels how to know at which level the reversal will take place. So friends, that's indeed of valid question and should be asked why Learning Fibonacci so far? Just learn these basic concepts or building blocks off Fibonacci. And in Convergence Lecture, you will find the answer to this important question. There. You will specifically find a range where the reversal low price will take this. So moving forward with the redress mons, let us understand retracement with the help of a practical example. This is for our chart of commodity crude oil, and you can see the crude is an uptrend from point A to B, and after me you can see there is replacement or correction. Fear still point C. Now, if you don't feel grouchy levels for it, we uptrend. It is surprising to see the retracement happening at crucial 50% level first and then at 61.8% level 50% level was in fact, acting as a support for much longer time, while 61.8 question fu karate retracement level acted as support for a brief fear. And after this, the price again most and continued its afford. Really, let's know understand from Nazi retracement in a downtrend had also important. Retracement levels are 23 16 question, 38.2% 50% 61.8 coarsen and 78.6% levels. And after 78.6% level, trend is as you need to be broken. Does. If the price crosses this level, the notary should be taken as price really makes a U turn. After this level, let's understand with the help often example visually so we'll just talk is in daunting, and it starts decreasing back at point B. That is in simple words. Stock is correcting from point B. So if you run the fifth Nazi tool from point A to Point B, then it is seen that most often Fibonacci levels act as resistance. That is, stock either takes 23.6% as resistance and reverses from this level that is around Point C and then continues its downtrend, or the stork and face resistance at around 38.2%. Fibonacci level that is stock takes reversal at 20 and then resumes its previous downtrend , or the stock and fears that the distance, at around 50% from 90 level that is stock, takes reversal at Point E and then resumes its biggest downtrend on the stock and face resistance at around 61.8% level. That is, stock takes reversal at Point F and then resumes its previous don't grant. Also, as in case of open price, generally takes reversal around these levels and not exactly at these levels. So please maintain before around these levels, when you are trading, does you can see from 90 levels access very strong resistance levels in case off down trending market as well. Let us see a practical example of downtrend. This is for our GBP USD chart and just notice this downtrend between points A and B after point B, you can see there daily's correction so produced most often use Fibonacci retracement toe to check how far the stock and rigorous before making a reversal back to original trend. Now, when we run the Fibonacci retracement from point it, we then you will notice that would raise mint levels on your chart and all the levels we discussed in last life where we expect the price to take reversal and continue its downtrend doesn't discharge. You can see there the price first expedience distance at point C that is 50% retracement level and then again repressed back to 61.8%. Food 90 level at 20 and lastly again took 50% level as the distance at 20. Before finally continuing its downtrend, we can see there this currency Pierre was inside with woman between 38 point person from Nazi level and 61.8 question criminology level before finally resuming its downtrend after 20 first. This is an important example, as you can see that it's not necessary that price, it's just one Fibonacci level and then continue its previous trend does. As a trader, we have to be patient and have over stop loss and targets fixed before entering into any trade. 6. How to run Retracement levels?: hope you are no clear with concepto Fibonacci Retracement Nationality. What stuff should we follow to run the figurative your basement level on the chart friends , Since fifth monarchy works best when the market is trending. Thus identify the sex which are trending. How are you doing? Fibonacci venue. See market is inside this woman. After this find significant swing lows and highs. You already learned how to identify swing highs and swing lows. And once you find significant swing laws and highs, if there is an uptrend, click on Swing low and drag the cursor to swing high as a big practice with most recent swing height. Notice that while running Fukamachi we always go from left to right. That is, we take over starting point in the left and ending point is always on right now. If there is don't trend, you should click on Swing High, which is on left, and drag the cursor to the swing low, which is on the right as a beginner practice with most recent swing low. Another point to notice the always take weeks into consideration while selecting the starting and ending points off swing highs and swing lows for running Fibonacci. Let's understand. Practically so, as I said earlier that we will use free charting platform off investing dot com and in there just click on this icon on the left of the screen. And once you do, you care are dropped on Meanwhile years, which contains are different tools. And you will find all the food naci tools at the last off this list that is here. And since we are learning retracement, giving you the first tool from this list off of Nazi tools that is this to actual my adul and name Fibonacci Retracement. So friends, as you select this to you, are also to run your first Fibonacci retracement. This is for our GDP USD chart as step one, Just see if the market is trending and we see that market is in major apparent between points envy. And as markets starts with racing after B V s, a traitor should seek the levels Were this retracement might hold and reversal takes place . Since you already found there, there was a major open. Now has Steptoe. We have the wine significant suing high and law as a trick and as a bigger always select the starting low the Afghan as 1st 5th Naji Point and the recent swing high. That is point from where the reversal started. As second Fukamachi point does. You can see that point is a place where this operation started and point these A recent swing high that is place where the race one started. Does asked up three plays the cursor and point A and drag it to point B, which is end of the blistering now leave the Carson at point B. As soon as you leave the cursor, all major food naci levels will appear on the chart and us As a trader, you can expect retracement at any of the food Bonacci retracement level shown on the chart . As you can see in this example, this currency pair, if you train still point C and hold around 23.60% Fibonacci level for a good period of time before retracing further down and taking on underfoot multi level as support. At 20. This time it took 38.20% from Nazi level as support and here also it stared for a good period of time. After this, the pair draw further again and took supported another level at point E. This time it's 50% level. And after this the uptrend resilience. So friends, as you can notice these levels acts like price magnets. Let's see another example. This is for our chart off commodity crude oil. And if you notice there is a major downtrend in crude from point here, Toby And after this the price starts replacing. So as a film naci trader, we should always look for retracement levels so that we can take our positions Does as first up. We already formed that there is a major downtrend. Onda and Price have also started reducing. Now a second stuff. We have to select the swing high and low from where we will run the Fibonacci retracement levels does as we learn the select point A as starting point of the downtrend and take a decent swing low as point B does we got over swing high and seeing Lord to run the Fibonacci retracement. So evil place of a cursor, eloquent a on dragon's tail. Point B As soon as we leave the cursor at swing low, that is going be, you will see the food that you transferred levels on your chart and these mark potential resistance levels off of is the price militaries friends. Another point to move This is that in both examples, we started from left and dragged a point B, which is at the right off point. A. So if you booed opposite the levels will appear in wrong position and does. You will commit mistakes or feel confused. The rule for wrongful, not use simple. Always go from left to right Now coming back to this example, you would not do that. Prices trey still 78.6% food 90 level that is Point C and then resumed a downward journey. But before breaking the support level of B, there is again a retracement back to 61.8 question from Nazi level that this point B and finally you tracing third time to 38.2% retracement level at 20 before finally breaking the support of B and resuming its downward journey by giving good profits to the traders 7. Should the price touch the retracement levels?: friends. Another important question, which I am often asked in my training sessions, is that sure the price touched the retracement levels, or van should be considered retracement as valid. Retracement France in training. Nothing is for for and so is Fibonacci. Though the charting tool gives retracement ask clear levels. But as a trader always went in before a few percentage of points around the levels, that is considered these levels as an important price action zones or areas off interest just in this example of us talk, visa and notice just uptrend from point A to B. After reaching point B. You see there the stock starts dressing back. Now we use over 50 90 Tool to find the levels off of Is the retracement can happen. So we got off of natural levels clearly drawn on the chart, and we saw that the stock took some support at 50% level and finally makes Reversal just few points away from important 61.80 person Fibonacci retracement level. So the question is, should we consider that retracement above the 61.8% retracement level as valid? The answer to this question is yes, as we discussed earlier, the level should be considered as zones with before a few points both above and below the level does that retracement in this example is valid and we should always look for creating opportunity if other factors which we will discuss later in this course also holds true. 8. Simplest forms of trading using Fibonacci: friends Hope you're clear with Fibonacci Retracement concept. Now we will see the most basic form for creating which more stretchers implement Using Fibonacci Tool. We will understand this with the help of practical example off us talk Broadcom on a daily chart. In this training set up the trader first identifies are trending assert. Here you can see that the stock is an uptrend between points A and B And after that the retracement starts and finally stopped took support at 50% retracement level and reverses the critics and tree at this level the target as the resistance level that is lost swing high. The stop loss in the startup's only put our Revis swing low that is here. The Stargate is at the level of point B and stop losses at the level of Point A, which is previous swing low. So, friends, this is the simplest form off trading set up which many 15 as you treat, does use. But friends please don't start trading as off now because they set up in this simple form has various shortcomings like high risk. So please wait for the later lectures on trading when we refine this training set up on developed, the sort of which we actually given 9. Is Fibonacci the holy grail of trading?: no one important question, which many traders has on their mind is from not the holy Grail of trading as many project . The answer to this question is big. No, just like any other technique in trading or investing. There is no holy grill, and if someone makes you believe that there is 100% full full strategy in training, then you should stay away from such false promises and save your hard earned money. Friend. This is daily chart of us talk Netflix, and you can see the stalkers in downtrend between points A and B. And after. When we we saw the stock start redressing and knobbing, Fibonacci trader Wimbley went, did off. If we're not usually addressed, meant tool from swing high at this point e swing low that this one be finally, the stalker Tea Tree is still 61.8% 50 90 retracement level and then started its journey downwards. But the moment off stork was not as part of our expectation as stock didn't broke the support level off a so that target didn't tip. In fact, the stock goes to sideways movement. Let's see another example. This is daily chart of us talk Walmart and noticed this upturn in the stalk from point. It will be Now the stock starts retracing after point B and V s will not you traitor must be interested in knowing the level where the stock will bounce back on the target and level of B. But as you can see, the stock broke all the 5th 90 support levels and in fact, hit the stop loss does. This wasn't lost making trade. So in both these examples, you saw the at field not is not the Holy Grail and do suffer from some shortcomings, just as any other indicator or technical tool does so France, for last two examples, you already got the answer to this important kosher which every trailer asked, and many trigger keep on searching. Holy grills. Fibonacci Retracement levels are not the holy Grail of trading and just like any other trading strategy, this to suffer from drawbacks. No, that price won't always bounce off from these levels, bro. Backs which Fibonacci retracement levels of us from our in case off another friend. The 1st 1 is venturing lower high combination to select for running the retracement levels . Second is visually retracement level will provide support to the price target is in many cases, you will notice that market will break all retracement levels and continue the downtrend and lastly, difficulty in placing the stop loss. So, friends, these four are the common drawbacks off Fibonacci, which most traders fear off, and often one of the reasons to stay away from this amazing too. But friends discourse will help you in solving and finding solutions. Who all over bro backs in a step best profession. And by the time you finish the scores, you will be much more confident in implementing Fibonacci in your day to day trading or investing. So in later lectures, Villard confluences on convergences to overcome these drawbacks and add this important film naci tool in our trading arsenal. 10. Fibonacci Extensions: welcome to this lecture. In this lecture, we will discuss another important concept and Fibonacci trading doctors Fibonacci extension So that stock like people, not Syria traced MERS Fibonacci Extension levels also helps in forecasting potential areas off resistance and support in the market extension also run from prior low to high in case off trend and prior high to low in case of doctrine, using two data points as in case off 15 ACI retrenchments. But now versus the difference between the two friends. The difference is that in retracement, price relationship is measured for less than 100% off. The swing violent case of extension price relationship is measured beyond 100% off the swing. Does Fibonacci tool not only gives the level for retracement between the swing, but also gives levels way beyond 100 person once the 100% retracement level is broken. Major Fibonacci extension levels used are 1.272 or 1 27.2% 1.618 or 1 61 point a little person and 2.618 or 2 61.8% level. Also just as retracement femininity extensions can also be used for any timeframe, no matter how long or how short. In fact, traders all over the world used these important levels in their trading and does Fibonacci extensions are a proven technical analysis tool? Let's clear the concept more with the help of a visual example. Suppose the market is an upturn, remarked this upswing with points and me after we supposed retracement happens and price starts moving downwards. Now, as a few been agitator, we immediately plays over 50 not you tool for this upturn. Starting from point A to point B No, the stock and vitreous toe any of the do treatment level between points A and B that is stalk and victory is still here and then reverses and continues its uptrend. All the store can view tree still this Fibonacci level and then reverses and continue its uptrend or the stock and retrace still this Fibonacci level before continuing its previous upturn. But French, there is another scenario that is price breaks all 15 90 retracement levels through 100% support level and continues moving down Now here come the rule of Fibonacci extension levels. These are the levels which extends beyond 100% level and does name Fibonacci extension levels. So if the price breaks 100 person level, then it seem that price most often takes support at one of the Fibonacci extension levels. That is 1.27 point 20 person, or 1 61 point here Geno person, or to 61.80% level does. If 100 person support level is broken, then price can recreate still won 27.20% extension level. That is this level and then bonds back from this Fibonacci extension level, or the price can retrace still won 61.80 person Fibonacci extension level and then bounce off from this important Fibonacci level. So you saw here that once the retracement starts after the upswing a B, there are basically two zones off correction. The price can take supporting either retracement zone. That is, this zone, which lies between 0% and 100% level of this win or the price can take support at Fibonacci extension levels. That is the zone which lies beyond 100% support level of the swing, or in simple layman language extension level locals, when there is retracement for more than the land off upswing does Previous uptrend is no start to be broken. Let's see your practical example. This is for our chart off currency pair, Euro USD and just notice this uptrend from here. Do we? After we the retracement stars and as we place our Fibonacci retracement toe to see important levels were the currency Peter Mayer tech support? So was the retracement started. We saw that currency pair didn't took support at any of the retracement level between 0% and 100%. And once it broke 100% level, we should see the extension levels because now they're all comes into play as currency. Pair of really most probably take supporter and you all these extension levels. As we saw the currency pair first took supported, went on the sound for 20% extension level for a brief period before taking another supported important 1 61.80% extension level and then took third support at to 61.80% extension level and then the currency pair. So a good bull run before hitting 100 portion devil as a resistance level does. You saw another example that proves Fibonacci levels are important levels. Notice how currency pair took support and assistance mainly at food energy levels only, and so from Nazi tool is must have in any traders. Toolkit. Let's go to your discuss extension levels in a downtrend. So if the market is in don't ran and you identified this downswing from point here to be, then price can replace either the one C, which is Fibonacci retracement level on 20 or point E, which are between zero person and 100% during off the swing A B. But since market is so unpredictable, price may brick 100% resistance level. And now the Fibonacci extension levels comes into play. So once this important assistance level is broken, one of the Fibonacci extension levels most often become new resistance level. Does the price medic 1 27.20% as potential assistance and then bounce off? Or the price can take 1 61.80% Fibonacci extension level as a new resistance and then bounce off from this level. So by now the concept of Fibonacci extensions must be clear to you. I again repeat when retracement happens between zero and 100%. This is Fibonacci retracement. And when price retraces way beyond 100% resistance level though Fibonacci level in this region are court extension levels. You have to see a practical example of food. Nazi extension in a downtrend. This is our leech Artal gbp, USD and we saw the currency pair is in downtrend from 0.8 We after me, the correction starts and currency pair starts waitressing. So we're under 50. Not you tool for this thing a b but we sort out the currency pair didn't faced any the distance at from Nazi retracement levels. In fact, it globe the 100% resistance level also so friends, once it broke the 100% level, then extension levels comes into play and we should know Look out for extension levels for possible reversal And as you saw in this chart, the 1 20 sound 200.20% extension level. So I did a good resistance to this currency pair and currency here, then starts moving downward before having a brief condition it 100% level that is his own. Once this congestion was broken, doctor and super moved down sharply, giving good profits to operators who shorted the currency Appear. Friends are the woman. Please don't think off with what you're reading right now. We are in learning face and retracement Extensions and projections are the building blocks off of naci trading? Does police stay patient until we finish the predictions And after of reactions, we will build on these blocks. Toby Lover Trading strategy using proven Archie Tool. 11. How Fibonacci Extension level is calculated?: let us now see how these extension levels are. Calculator, friends, Fibonacci Extension is only build on the swing, baby. The extension levels are in fact, calculated based on their distance between points A and B. All the Fibonacci levels are in fact, drawn from point B. That is point B me 0% retracement. And from that, all the Fibonacci levels are slaughtered by the pool. And as we learned the levels, between 0% and 100% are retracement levels. Why levels beyond 100% are extension levels. The distance between A and B is calculated vertically. Does this distance is regarded as 100%? No, the 1 68.2% extension level equal 68.2% distance between you and me, which is drawn from point B. As you can see in this chart, when 61.8 ports understands between points A and B, that is this orange double arrow added about 100% level that is here we finally get 1 61.80%. Fibonacci extension level, as shown by this Red de Valero. As you can see in this s and P 500 for our chart. The market didn't took any off. The Fibonacci retracement level as resistance what broke the 100% resistance level also finally took a resistance around 1 27.20% extension level and then at 1 61.80% extension level. I hope you are clear with calculation off extension levels. 12. Reverse extensions: friends still on. We only learned the levels up to which the retracement may happen and when the reversible day place, but can feel that you use for targets. Also, the answer to this is yes. We can use reverse extension levels to determine possible target levels. Let's see home French Dillo. Useful extension levels are always plays. Oppose it to the direction off trend that is, if there is upturn than extension level appears in this region that is beyond 100% support level, and this extension region gives us new support levels. But reverse extension levels can be plotted by divorcing these Fibonacci levels in the settings. And now these extension levels appear in this region that is in the direction off. Previous suffering. So rewards extension levels helps in predicting future targets. Along with retracement level. Let foresee what settings you need to change. You just need to click this rewards option in the settings, and using this does have not yet transferred levels. Will rivers and no extension levels will act as future possible. Target levels starting from pointy. Also check 1.272 and 1.412 Fibonacci extension levels because while selecting targets. These also play an important role. So friends of the D fort from Nazi retracement levels look like this. An extension levels spread below point A that is below the 100% retracement levels. Now let's either change when we check the reverse option in the settings. Next. Understand with an example Friends. This is reverse extension trading set up on his famous as a beautiful not you're treating certain and this out of first with select or training as hurt like in this example, you are seeing daily chart of Euro USD vergis trending between points A and B and Steptoe deviate for retracement. Tell point C which can be any other Fukamachi retracement level Here. In this example, you can see the retracement l 0.3 year to 5 90 level northern. These levels are now reversed retracement levels. That is, this 0.3 year to retracement level is actually 0.600 retracement level in the forefoot. Bonacci does the 0.3 year to level and reverse. Fibonacci is also an important level in step three. Once the currency pair reverses, we set our targeted any on the extension levels. That is, either at 1.272 or 1.618 or higher levels build on strength off the turn. Or we can also pray all the targets and write the trend longer doesn't this example. The currency pair first hits the 1.2 simple extension level at point D one, which was over first target. After this, it hits the second target off 1161 year extension level. Does rewards extension levels provided clear target levels. So friends you can see Fibonacci helps in giving traders clear cut support and resistance levels and clear the trader's mind from all the clutter. In next lecture, we will study another important building block off Fibonacci. That is projections. See you in next lecture. 13. Fibonacci Projections: Hello, friends. Welcome to this lecture friends you have already learned through building blocks off Fibonacci, trading doctors from Nigeria, Trestman's and Fibonacci extensions. In this lecture, we will discuss the last middle building block off of naci training that is Fibonacci projections. And then march, our V eight willing over high probability trading platform friends, as you saw in various examples discussed still here when the market is an opera, and then most often there is correction or retracement, and a Fibonacci retracement and extension levels helps in finding those levels. But as a trader, we are also curious to find possible targets, though we discussed the reverse extensions in last lecture. But but you must have noticed, if you took to get up, warns that is point A and point B to find the targets more or what. We have to change the default settings off the tool to rivers. And that might have caused confusion in your mind, because off genial reversal of retracement levels. So France. What if you find a matter to determine possible targets? Verdery Restaurant level at this point sees also taken in Tokyo on, and there is no need to reverse their levels also, so the solution is provided by Fibonacci projections. So, as we learned upto her, Fibonacci retracement and extensions provide levels off support in an uptrend and resistance in a downturn. But as a trader, when price resumes its previous trend, that traders are interested in finding how long they can go and for a variety protection levels helps and finding possible target levels where we can exit the trades. So we will see Fig Nagy's not just a retracement finding tool but also a tool to find possible future targets. France. Key difference. That projection has in comparison. Tool retracement or extension is dirt. 15 90. Production levels are drawn using two gives in start off one as in the case of retracement and extensions. In simple words, projections used three date upwards that is, points off upswing and downswing over trending with in case off operation and the point of retracement or extension as 1/3 data point. So friends. Another important point which I would like to discuss at this point, is that many instructors use the term extensions and projections interchangeably. But there is major difference between the two, as you have already seen. Projections and extensions are two different concepts. Extension is primarily a retracement only, but it goes very beyond 100% level, oppose it to the direction off the trend and also uses two data points. While projection is basically a target determination tool and uses three data points and production levels are formed in direction of the turn. So have these concepts clear as many traders or instructors mix these two concerts, and this leads to confusion in the mind off new traders. French Second important point is regarding different times used for predictions. You may hear the home expansion to the point extension and many of the new four projections , so names can be many. But the basic concept is seen friends. Even our charting software off investing dot com uses different tone for protection as well as we'll see later. So France Fibonacci projections helps in predicting clear future target levels, which very less indicators or tools provides 14. Logic behind projection levels: let us now understand the logic behind formation off Fibonacci projection levels. The logic behind projection levels is based on two theories. The first is adultery, and second is Elliot with Terry. According to adultery, the main train has $3 burnt faces. The first wave that is with a B and denoted by one is just abound from a support second wave that is, we're busy. Denoted by two is the retracement we've, and lastly, third with that is we have City denoted by three is assumed to have the largest potential for profit gaining, and us doing this face trailers and goes into the trades and take their positions, it is assumed, are the price rises more sharply in this third phase and profit financial is, omens does ask for adultery. This third with cannot be smaller than the first wave. Now we come to Elliot Factory, according Toa Elliott Wave Theory, which is in fact based on Fibonacci numbers, says their third face either equals the first or frequently exceeds it by 1.618 times. That is the golden ratio times. Does Fibonacci levels are created using basic principles or bold. These theories enhance these levels can be used to forecast the future targets. Let's see a practical example. This is daily chart off currency appeared Euro USD What is this uptrend which is denoted by one, not a trace. One took place on the currency Peer review trail still here viewed in order this retracement with our second face with number two. Now just see the strength off this third with denoted by tree it 1st 1st minor resistance at 78.60 person from Nagy projection level then feels minor resistance at 1 61.80 person from Nazi protection level before finally crossing the 1 61.80% production level Does you can see this third way easily crossed 1.6 28 times the first wave in this case, though this may not always cause 1 61.80% protection level. But most off, this wave is longer than the first face off 15. How to run Fibonacci Projections: friends. Hope you're clear with basics off Fibonacci projection levels and the logic behind formation off these levels. Let's now learn how to run these levels on the chart. And what precautions are trader should take? We will discuss the steps for uptrend, and the steps were downturn are Just reverse off this in case you face any problem, then please message me. I will explain those in detail. Ask you any as step one, click on a significant swing low and drag the cursor to most recent swing high Now, in steptoe, click on the swing I and dragged back down to retrace went swing low and click there. Once you do this, each Fibonacci projection levels will be shown on the chart and you can see border issue or percentage and corresponding price levels Also does. You can see Fibonacci. Projection levels are created by identifying three Daytop ones that describe two lives. No, As I said, steps for don't rent are just yours. The Fibonacci projection levels you see on the chart acts like future target levels. And as you can close your prayer on any of the production level most probable termination point off next up move that is for wave tree can be Issues 38.2% 50% 61.8% 100% 1 38.2% 1 61.8% So 61.8% and so on. From the retracement swing low. Most traitors target at least 50% projection level for their target, and even more depending on other factors like strength of the trend and major historical resistance levels. Let's understand the plotting off of Nazi production level with the help of this animation , as we learned earlier Frivolity projection needs three data points and hands. First identify an up ran and clearly praise the cursor on swing. Low off the option that this point in this case now drag the cursor. Tell Point B. Richard swing high, No click again at point we and drag the cursor point C that is point off retracement. Suppose in our example the retracement happen till 61.8% level. So as soon as you leave the closer you will notice all the Fibonacci projection levels drawn on the chart with points year, 0% production level and all the Fibonacci projection levels above this. For most readers, these production levels are answer target levels and the book profits partially at each of these production levels. Now let's understand how to select this projection tool in our free charting software. As you selected the address mental, goto this pitchfork sign and click here. Once you click, are dropped on. We know containing various tools will appear. You just need to go down and select this tool. That is trend is Fibonacci Extension does. As I said, different platforms have different names, but the basic objective is same. That is all. Three date of one. Fibonacci Extension tools are nothing but Fibonacci projections only. So once you select the stool, you are already deplored to your first with Nazi production levels on the chart. 16. Projection Example(Lupin Stock): friends. This is daily chart off stock, Lupin. And just notice this upturn who the swing lowered, pointing and swing high at point B. After we, the stock face retracement until point C and then again starts up one woman now, as a traitor, we want to know the possible target levels which we must focus on. Does the run the Fibonacci production levels by first holding the coarser at point a and then dragging tell point me and finally ending at point C. As soon as we leave the coarser the Fibonacci projection levels are displayed, giving us clear target levels, which we may focus on just northeast of production. Levels in this box also know their tool not only displays the target levels, but also the price levels which we may target. Just noticed the star Kids 100 portion projection level giving us good profits. Also, not many traders just trail their profits and gain good returns using Fibonacci projection levels here. Also, the third way was beautiful in the first field as it crossed 100% Fibonacci projection level 17. Projection Example USD/CAD: Let's see another example. This is daily chart off currency per USD, Kennedy and Dollar and notice this uptrend their 0.18 towards the swing law and point B denotes the swing high after me, you can see the retracement happening on the currency. Beria Tree is still point c friends was the previous trend resumes. We are interested in knowing the future target levels and for that we run the Fibonacci projection levels using three date upwards. Not this points a the N C. Once the projection levels are on the chart, we can place the sell order at any off the production levels based on the risk appetite. In this example, you can see the currency pier 1st 1st temporary distance here at 38.2% projection level. Then it march. It's variable and faced another resistance. That too at 50% projection level and finally faced 13 previous resistance at 100% food 90 level just before crossing important 100% level 18. Projection Limitations: so friends in this lecture we sold at Market most often finds temporary support and assistance at philology production levels. But in last example we saw that in market nothing is for money and currency. Pair goes to sideways moment after hitting 38.2% production level. Does hair. Also, there is no way to know which production level will provide support and assistance. That is, traders are confused which production level is ideal to prayer during their training sessions. I advise fellow traders who was using food variety projections toe exhibit the traits partially. That is book first profit. Our support and assistance level off previous swing Higher law. Second profit booking at 50% production level and third profit level should be 100% protection level, nor that disorder may change. That is, 50% Production level may come earlier than the level off previously. Higher, low for aggressive traders. Second profit booking should we have 100% level and third profit booking at 1 61.80 person production level. Another question I Mars in training sessions is that which wing low to start for creating Phil 90 projection levels. French dis river dealing, lecture off convergences. Very well. Use multiple swing laws instead of just one swing low and high to create both retracement or projection levels. So, friends that you take away, we have us. Fibonacci levels are very useful but never enter or exit a trade bills. Don't Fibonacci levels alone. Femininity levels should always be used with multiple factors which we will discuss next. Fibonacci levels are important price action zones and as we will implement the price action strategies to implement high probability trading setups with Fibonacci as base friends. With this, we finished the building blocks off Fibonacci and hope you are clear with all the concepts upto here. In next lecture, we will discuss types of Fibonacci traders. And after that we will learn about convergence, which is one of the tools to implement high probability setups using Fibonacci 19. What is Fibonacci convergence?: Hello, friends. Welcome to this lecture. In this lecture, we are going to learn an important film, not your trading concept, which many traders miss from there. Fibonacci Trading Arsenal status convergences. In this lecture, we will solve one of the primary quality which every Fibonacci trader has that is very swing lower, high to select and how to find victory. Retracement level has higher probability off reversal after off many levels which Fibonacci tool gives. So that's start friends. We already had a glimpse off convergence, shooting and off. The last lecture from Nazi convergence is, in fact, used to find very strong resistance or support levels. And those convergences helps in executing high probability trades. I want to find a Fibonacci Convergence as a situation when you're under Fibonacci retracement lines for more than one swing and you get at least 3 15 90 price relationship in a very tight range which are also called converging zones. And as these converging zones are in fact very high property price accent zones, the Zones act select price manners and has high probability of attracting prices to these levels. So if price respect diesels, then you should expect a very good move in the market in case design is broken. Then expect a good move in a poser direction. Friends and this lecture. We will focus primarily on convergence off retracement levels only. But convergence can also be applied to extension levels, production levels or mix off all three. But since as a trader, we are more interested in New England retracement level, that is, we want to know a high probability reversal zone does reveal implement convergence. Basically do retracement only doing later examples. In this lecture, we will implement convergence off both retracement and extension levels. 20. How Fibonacci Convergence works?: Let's understand how Fibonacci convergence works, usually with the help of an example friends supporting a citizen uptrend and moves up by making higher highs and lower lows like this. No, once it reaches point here and started retracing and made some substantial retracement, we're interested in knowing the possible retracement level. But as soon as we didn't Fibonacci retracement levels from any of the swing laws. If you find many to dress one levels and most new taters are confused or, I should say, terrified seeing this but using Fibonacci convergence, we can actually find a high probability reversals on, and moreover, there is no need to spend time thinking about which swing low to use. So in convergence, we simply drop Fibonacci levels from every previous swing low from where the opera in started does Vidro. Fibonacci levels from beat away like this hair from Laci levels, as shown by that, Then we drove of Nazi levels from suit away like this here who have not yet able that shown by black and then we drove with blotchy view. Trace mint levels from did away like this and leveled here are shown by white no friends. The result might look confusing to you. And in fact, this is the case with many new traitors who learned this concept. What you have trouble is simply find a zone where you can get at least three converging Fibonacci levels. That is compact levels. The higher the better. So if you look at this zone shown in the rectangle, you will notice that in the zone we find 4 15 90 readdress mint levels very close to each other or converging as compared to any of the reason here. Four levels converging are 50% retracement level off 80. 38.20 retracement. Level off a C 38.20% retracement level off baby and 61.80 person retracement level off 80 does. This is a very high program. The price action zone and chances off reversal between this zone is very high and more someone you will find a new treatment till here and then we were so starts like this 21. Convergence Tips: a few dues, which I would like to share before we move forward. The first is always go with the trend. That is, if the trend is up, friend that always seek for converging zones, which accessible and the third wave also results in a print. Never try to go against the grain. Does the trend is uptrend? Then find convergence zones. Net helps in price race. And if the trend is don't print, then find convergence ALS that helps in price degrees. Another question I am are during my workshops is what type of friend is best for using Fibonacci friends. Best friend is the trend with higher highs or lows in such trends, it's easy to get convergence. So as an example, just rebuild these chars in Boulder charts. Market is an upturn, but the chart is better for them. You mending convergence If you see the second chart here, the uptrend happens by making higher lows, while in first chart, the A friend was pretty straight without making higher lows. There was no minor retracement in the first shot friends. It doesn't mean that we can't applied Fibonacci to first sharp, but it's hard to implement convergence in first chart as compared to second convergence results and giving high probability trading zones. The second is better chart of trade on and implementing convergence. 22. How to run correct multiple retracements?: friends. As you saw in case of an upturn for Fibonacci Convergence, we need to plot more people. Retracement levels from multiple swing lows. But most off one, I see traders running wrong multiple retracement levels. So now let's understand how to draw correct multiple route residents. In case of an uptrend, you have to first identify highest high off this upturn dandruff of Nazi retracement levels from multiple swing lows toe this highest high and lastly, never mixed the swings. It's the simple. Similarly, in a downtrend identify Lewis law off this downtrend, and then bro Foon achieve retracement levels from multiple swing highs. So this Louis law and Head also never makes the swings. Let's understand this with the help of some practical examples, this is daily chart of Euro USD, and you can see this uptrend in currency. Pierre Nor that this apprentice formed by way off making higher swing lows does. This is good charter and people Fibonacci, convergence. So in step one, you have to first identify the highest high off this upturn. So in this chart, point is over. Highest high off the open. Generally, this is nothing. What point where retracement started was this point is identified, your next step is to Mom. The swing lows which were made on the way up to here, does remark all middle swing lows in Next up. Just draw Fibonacci retracement from each of this swing lows to point a. So first we drove him. Not you. Retracement Level four swing beat way like this. Then see it away like this then did away like this than anywhere after that from after we and at last from G do it nor that you are not seeing the trace for level here as the primary objective here is to show you how to draw correct multiple replacements. This is the correct way to run multiple retracement on the chart. Hope this is clear but French most often I have seen new traders making multiple territories one like this and then complaining off nor getting results are not finding the convergence in food. Natche levels, as you can see, wondered Raisman level is drawn with swing. BC on a better idea on a little bit here and then you can see Fg does. There are Fibonacci retracement drawn all over the chart and this uptrend from beauty way so friends. These are incorrect. Multiple retracement and mistakes like these should be avoided at any cost. Maintain the order and procedure we learned in the rules and take last example as reference you actually another example. This is our resort off Cryptocurrency eat atrium and notice this downtrend. So, in case off a downtrend, you first have to identify the Louis law. That is this and then using this as an anchor, I brought my people retracement from various wing eyes. So in this example we identify these clear swing highs shown in the circles. Now his next step, we have to brought the Fibonacci retracement levels from all these wings. First, withdraw Fibonacci retracement level from beat away like this done from Segolela then from due to wear. And lastly from eat away that is this so first, this is the correct way to chlorate multiple treatments. Simply get an anchor point and then used that anchor point to draw multiple Fibonacci retracement levels 23. Step by Step Convergence example EUR/USD: France hope you're clear with how to grow multiple retracement correctly and how to choose their data points on the chart. Let's now move forward and step by step, Understand convergence with the help of a practical example, This is 15 minutes Euro USD chart and noted this upturn from here to be in this currency. Pierre after me, the currency Pierre starts retracing and us as a Fibonacci trader, we want to know how for the currency pair wilder trees and very it will take support before again bouncing back and continue the open. So the first step we identified the highest high. So as a first step we identified the highest high which is point B in this case and lower lows that this point A, C and D are denoted by Oles. Next move forward. No, no, Let us drop of Nazi retracement. That is from B to a like this next week under your restaurant from points you Toby, as soon as we dragged the cars up from sea, do we we get over retracement levels on the chart, please no doubt for explanation purposes. I am plotting each retracement one by one without showing you the previous Leatrice went on this chart. Now let's draw retracement from do you, Toby Ash owning the jock. Once all the three multiple restaurants are drawn, you will see the chart like this. Yes, full off lines. This may look confusing if you are just a big ner. But friends we have toe closely watched these lines and look out for the region which is closely packed with the retracement levels. It may look frightening at the beginning, so take few seconds and try to Mondo zone Joseph, where we are expecting maximum protection and high probability off reversal. So, friend, hope you're able to find some zones when we observe analytically noticed this zone where three retracement levels are converging here also, you can see three retracement levels convergence and lastly in this zone also, you can see three retracement levels converging out off these. The 1st 2 are pretty strong levels where two levels are almost over lepen while the third zone is not dash from them. So, friends, a probability of reversal is huge from first twosomes and you can see from price action Also, the price bounced off from very first only so friends you can see convergences helps in identifying high priority zone without worrying too much of all the swings, which we hard to select to run the retracement levels. 24. Fibonacci convergence trading setup: Hello, friends. Welcome to this lecture, friend. Hope all the concepts which we discuss still here are clear. So now we're in perfect position. Toe, Discuss the Fibonacci based trading set up which you this conference strategy. If you have already taken my price action trading masterclass, then you must be aware off this conference concept. But those off you who are new, let's realize the concept in short, in simple terms, when two or more levels off Momenta building comes together at a certain point on a chart that is called confluence. Did you ever notice meeting off two tribute trees off the river? After conference, the river becomes more grand and gains momentum in the direction or flu. Similarly, re implement conference in price action trading. If you take as many signals as possible of particular price action Zone tells and then take over, buy or sell decisions. Let's understand this concept in depth French in treating the murder off tour more things, Prue. Highly beneficial. Often it can mean the difference between a loss making trade and a profit making trade. Just imagine you are working at a particular price. Actions on see, This is our price action zone, and we want to check whether the price will make reversal at this point or not. Now you were freezing knows, which were pointing towards reversal of prices. So what will be their chances off price reversal? What will be the chances off price reversal? Indeed, there is high chance that market makes a reversal. Yes, markets are unpredictable but still with consequences. Your probity off increasing successful trades increases. We will use this Converse strategy in a more Fibonacci based trading set up discussed in this lecture. Let's first discovered the rules over trading set up. First of all, this sort of works in any time from. So if you are an intraday tater and wants to exit your trade before the clothes off the market, or you are a swing trader or a long time trainer, so irrespective of your trading style, you can implement this strategy in any timeframe. But longer the timeframe better it is, and Steptoe find a clear swing high and clear swing low, so you need to find who data points from where you can run the Fibonacci, too. In step three, get at least 35 logic convergence levels. Does as we learned earlier. The convergence off at least three Fibonacci levels generates a high probability price action zone. Secondly, if you can't support the convergence off Fibonacci levels, then it's better to leave the trade and stuff for a check of convergence Zone is formed at major supporter Resistance level does. If the convergence soon is formed out of media support of the distance, then there is very high probability off reversal. This is nothing but adding confluences toe the chances off reversal instead. Five. Villard, another conference that is in sort of 200 Peter Simple moving average. With this, the sport, the long term trend and if the long com print is in the direction off main trend than the chances off reversal are indeed greed. In Step six, we see the formation off candlestick patterns in the border zone. The best possible scenario is if we get a bullish pattern, why seeking a long position or bearish pattern while seeking a short position? So if you find favorable candle patterns in conversion zone, then we can cash on the opportunity generator. Finally, once we are sure that the trading conditions are favourable. So in step someone we will take and treatment. There is a break out from this convergence zone in direction. Off original Trinh, that is, if the trend was Upton, then break out should be in direction off This apparent. Only the target should be supported the distance level for conservative traders but aggressive traders me use protection levels above support and assistance here to target higher as well discussed in lecture on projections. Next in step nine. Stop losses plays that previous support or resistance level, but conservative traders should put their stop loss at 1/4 of the target. So, friends, this is all of or trading set of rules. Now let us understand this with the help off a practical example, Let us see the settings off, not you. Tool first. First of all, for better view of convergence, please inject this background option. Using this only levels will be visible and no background colors. But if you are comfortable with background colors, as we saw in lecture on convergence, then you can use the set up as before go. So Secondly, on Jack 0.236 and zero point someone had six levels since minute retracement off 0.226 is not enough and read restaurants more than 0.7 or six often leads to trend. Reversal does. We will exclude these levels and create clutter free image. After all the levels off multiple retracement Sarun hope you are clear with the settings. Let's see your practical example. This is daily chart off Indian in Next Nifty 50 and notice this operation. I also know that this apprentice making higher swing lows and higher Shanghai's does it's easier to run multiple Fibonacci retracement. Now, after when be vz there, there is retracement. So let's use convergence strategy to first find out the convergence zone for this operation . So we run the Fibonacci retracement for each of these things. That is for B two s win, then force you to Wiz win done for D to West Wing, done for us win then for after a Swin and lastly for G to West Wing. Once all the retracement are on, the chart will look like this. The at a glance. This looks confusing, but once you zoom into this chart, the picture will get more clear and you can easily find out on wording levels. If their president Don't know. So let's woman. Once you zoom in and notice along the end off levels from top to down Juve notice here that four Fibonacci levels are forming compacts on this is the region where four levels are converging more compactly as compared toa any other place on the chart. Here you can see 0.3 to level off swing CIA 0.500 level off in the air, 0.600 level off swing year and 0.600 level off swing F A. Does this zone is a high probability zone? Were chances off reversal are huge. Let's zoom off the chart this one over convergence level. Now you can also feed their This convergence level is formed at a major support level. Just see this region. Were the price bones off twice? Next one you to check the 200 Peter Simple moving average. This ruling is 200 petered as a man and restored our 200 petered SME is looking upwards. Does we get three confluences in the zone? The first is 200 Peter Simple moving out a sloping off words meaning long conference is still up second conferences. That zone lies in major previous support level and lastly, convergence off 45 90 retracement levels. So when you combine all these factors, you can easily conclude that there is high probability of reversal. Was the presenters designed? And you can see Once the price entered the zone, it took a sharp reversal in off for direction. So was the breakout happened? We will take the entry that is Vidic and Tree at Around this level. The target will be pleased. That level of resistance that is this level. The Stargate was it here. As for the stop loss is concerned, I put stop law generally yet one by fourth, off the target level, the supporters said around this level. So friends hope you are clear with training set up, and nor that you cannot other conferences to and and on the probability off reversal. Let's see another example. This is for our chart of US dollar Canadian dollar notice. The currency pair is an uptrend between point B and A, and after a we noticed that retracement started. So we identified the swing laws in this uptrend and run the Fibonacci levels from all these things does were identified these swing lows that is the C, D, E and F and run the Fibonacci from all these things, and this will result in chart like this. So just focus your attention at the end off levels and score all the levels vertically along the several. Just pause the video and identify the converging zone. Defending yourself. Now Notice the zone on the chart. Notice how five retracement levels are converging in a compact region out of five to levels are almost over 11 and rest re are almost side by side here, 50% retracement level off baby, 50% retracement level off a C 61.80% retracement level off 80 100% retracement level off E and won 61.8% extension level off F. All these five levels are converging in this zone. Does the zone in blue is a high probability price action zone and will act like a price magnet. Once the price of the trees to this level, please notice that we're getting a bullish candlestick pattern in form of a bullish railway track. Does this adds on the conference and also chances off reversal from this level. Let's zoom in the chart and insert a 200 Peter Simple moving average to check the overall long term trend. As you can see, this blue color 200 Peter Simple moving average appears to be flat here and as inconclusive . So let's move on to check other conferences. Let's check if this zone is formed at a major previous support level. So for this less room on the chart, this is our bullish candlestick pattern, and we noticed that this is indeed formed at a major support level as evident from these areas. Off support and resistance shown in the holes does over. Convergence Zone is formed at a major support level. So as we saw in this convergence zone, we get five levels off Fibonacci, retracement and extensions. So we see this zone is formed at a major previous support level, and lastly, we got a bullish really attract Martin. Was the price entered this own retracement does There is very high program to unite. Reversal will take place from this level. So let's zoom in again and plays the entry target levels and support low and stop loss. So once the breakout happened from Dizzle Vitek and create around this level with target at resistance. That is this level. So in this street, our target would hit at around this level here stop losses Plays that one by fourth off the target. That is around this level. So friends hold This strategy is clear. But this I've wind up this lecture. See you in next lecture. 25. Fibonacci- RSI Trading Setup: Hello. Verne's welcome to this new trading second district set up is basically for intraday and swing traders, as this trade start up provides quick short breaks with high probability of success. So let's start. Let's discuss, what will we need to serve this training set up? The first tool is indeed Fibonacci Tool. Then we need artists I with 31 period and last leaving it Candlestick chart. We will use normal candlesticks only, and you can use any off the chart from 15 minutes to on our chart settings, depending upon your parading horizon. If you are an intraday trader and want to close your position by and all the trading session, select chart settings as 15 minutes or 30 minutes. And if you are swim creator, then you can select one our chart. Now let's discuss the rules off this training set up in Step one. Set artists Idol 21 pdf and chart settings to 15 minutes to one are. As for your trading objective, which we discussed earlier, then we need some additional starting zin Fibonacci insert a new level that is 0.118 or 11.8% which is nothing but half off 0.236 Fibonacci level. You can easily do this by going to settings off your Fibonacci tool and enter this new level or simply modifying an existing level in Step two, when our recien does oversold region that is below 30 level run. Foon achieved retracement from highest high off the downturn. They love the candle, which is formed when Adisai again exits oversold region Norman Artist I enters over what region that is above 70 Run Fibonacci retracement from Louis Lof The uptrend Tell the high on the candle which is formed when arias I again exits over what region? If you are feeling confused with this point, then that things will get clear when we discuss a practical example Next. Also, no dad. Aggressive traders can trick tradition even if our essay touches oversold or overbought levels and then divorces. Another thing to note is that to get more prayers, you can even added the over soul and over what levels that is Jane 70 34 level to 60 40 or ask for your risk taking ability. So was the conditions are met. Finally, in step three, we will take and three enter the trade at 0.118 or 11.8 Person Fibonacci level No. Let's discuss the target. So in step four, the target is sell half off the number off Lords AG, 0.236 or 23.6% of energy level and Target Do is sell other half at 0.32 or 38 point poopers and food energy level. If target two is not that you sell the other lot all squared 0.118 or 11.8%. Fibonacci level when prices this level again. So as you can see that targets are not huge, this set up is aimed at getting moderate yet constantly profitable trades. So this is very good. Settle for intraday and swing traders, who are more focused on getting profitable setups on a daily basis for dessert of stop losses place their high or low of the candle making lowest or highest swing. The best thing about this Adam is there. You won't get anti trigger if there is no reversal despite artist I entering overboard or oversold bones. Another point to note while implementing the set of us. If our size greater than 70 or Allah size less than 30 for prolonged period, as shown in this chart here, then take position at candle where RS I exits oversold or over war zones, that is wait for our recital league diesels and then take the train and simply don't take trade as soon as our sigh interest these oversold or overbought zones. Now, let's see practical example of this set up. This is our Lee chart of EUR USD. Now, without seeing the chart, just focus your attention on art is I and notice the point where artists and does the oversold region that is our size less than 30. So this is the region. Where are s I goes less than 30. So as soon as this happens, we should get ready to take the trade. But we have to wait for rs I to again exit this region. And as soon as artists, I exited this region. Visual runner Fibonacci retracement level from highest I off this downtrend. That is this point A and low off candle which is formed when RNC exits the oversold region . Doctors point B does stick low off this candle here and run the Fibonacci from It'll be nor dart in this week. Naci. We have removed the other levels and just included the levels we needed for the set up. So artist startup is ready now. And as soon as price hits the 11.8% from Banacci retracement level a country doesn't this street we take and tree at this level That is at the candle shown by Red Arrow Visa Target at 23.6% retracement level and second target at 38.2% retracement level. So, as you can see, first target is that you do at this level and second target is hit around this level. The stop losses players that law of the candle making Louis law that is here. As you can see, this trading strategy is simple, short and gives profits at regular intervals. Let's see another example. This is our Lee chart of us talk Netflix. So ask for our trading strategy. We have to practice I first and just more. Does this region notice there are days I just as the over what region and then bounce back ? Does aggressive traders still can use this opportunity to serve their trading setups. So we identified this candle denoted by point B a swing high and point Yes, Lewis law to run our football watching retracement levels was the levels are on the chart. We should wait for price to touch 11.8%. Fibonacci retracement level Does we trick and create this level? And at this candle denoted by Red Arrow Now we place the first target at 23.6 14 Fibonacci level and second target at 38.2% from Banacci level. Nor that we put stop loss at the level of B that is level off. Previous Sing High does asking in this chart the first target heard Start this level and second target X at this level does this one also is profitable. Swing tree Actually another example This is 15 minutes. Chart off commodity crude oil. Now just notice the artist's eye and you see in this region the RS I crosses 70 level and and does the over what region. Now, as soon as artist I exist This over what region we take the high off candle which is this candle, Sean would Red Arrow and second point as start off this uptrend that this pointy as swing low and finally the number Fibonacci retracement from these two data borns. Once the Fibonacci insert, we were for price to hit 11.8% level. And does we take Andrea at this level? That is just candle shown with Red Arrow and set our first target at this level shown in green at 23.6% retracement level and second target at 38.2% retracement level shown in blue . As you can see both targets for heard industry it and does this was also a profitable trade . Let's see another example. This is 15 minute chart off commodity crude oil. First, this is very good chart and please notice the artist's eye nor that are size in oversold region. Daddy's are a size lesson 30 for a long period as compared to previous examples. So which candle don't choose to run over? Fibonacci retracement friends. As for rules, which we learned earlier, we have to choose the candle where Rs I exits the oversold region. That is this candle shown with Red Arrow here? No, what's disk and a list chosen rule off our size over. And now our Fibonacci comes into play. So now select the highest high were this downtrend begins that at this point a Now run the Fibonacci tool from data 0.8 weeks. One strong. Wait for price to retrace. Still allow 1.80% retracement level. As you can see, the price hits this level here as shown with black line. And hence we take entry here. That is, we will buy here now. Our first target will be this level shown in blue and second target. Is this level shown in green Please, No doubt here. Also, our boat targets were hurt. Let's your last example. This example is from Euro USD. Currents appear and you can see 15 minute chart off this currency pair. Just notice artist. I hear Read it and does the over. What region? Now we will wait for our decide to exit and then select the candle which is formed to run over from. Not if you trace MERS. As for our trading set up does Vitek and cleared this candle here and plays the stop loss at level off. Previous wing. Highlight this, but did you notice the price didn't move. As part of our expectation and this currency, Pierre went into sideways movement. Our stop loss was hit in this case around here does This was a loss making trade. But since the risk is small and this set up so the losses are not huge. So friends, as you can see, nothing is perfect in training. But once you backed us this strategy, you will notice The false trails are very less as compared to profitable prayers and in case of loss making trades. Also, losses are not huge.