Fibonacci Trading Course (Use this for perfect entries)

Fibonacci is an awesome tool to bring

into your trading with Fibonacci you'll

be able to avoid a lot of bad losses

that you wouldn't have otherwise seen

you'll be able to take a lot more high

probability High reward trades and you

will be trading with more confidence and

Clarity and a deeper understanding of

what is going on in the market which in

turn is going to bring you better

results long term so in this class I'm

going to show you everything you need to

know about Fib from plotting Fibonacci

all the way through to the different

ways that you can use it to start taking

better trades so what's is the Fibonacci

retracement well when we use the

Fibonacci retracement tool we are going

to be presented with a bunch of numbers

and each of these measures a specific

size of pullback in the market so when

we are looking at a market that is

moving up for example if we wanted to

buy this Market it would not be optimal

to buy this high up in a move because if

we wanted a save stop- loss under the

low we're going to have to have a huge

stop the profits we make on this trade

are not going to be as big as they could

be so we can actually use this Fibonacci

retracement tool to plot the swing low

to the swing high and this is how we are

always going to use Fibonacci once we've

plotted the swing low and the swing High

using a Fibonacci retracement tool we

now see these levels as potential areas

for the market to pull back to so we can

actually use these levels to get better

entries rather than buying at the high

of a movement we could now place our buy

orders on one of these levels and then

when the market comes back to them we

will be triggered in which will give us

a better entry for our position but

obviously with so many FIB levels to

retrace to with so many different

options available how do we know where

exactly our border should be well that's

what I'm going to be teaching you just

now with two different theories and

first of all we'll start out by talking

about the discount premium Fibonacci

Theory so here we're looking at a market

that is moving down because it's moving

down to plot the FIB we would plot it

from the swing High down to the swing

low okay so we're always working from

the left with Fibonacci if we're in an

up move we will place the FIB at the

swing low to the swing high like this

and if we're in a down move we will plot

from the swing High to the swing low now

the discount and premium price Theory

suggests that there are two key areas

when we're using the FIB tool there is

the premium area which is going to be

the top Zone anywhere above the 50%

retracement and then there is going to

be the discount which is going to be

anywhere beneath the 50% level so with

this information there is now one simple

rule if we wanted to see a significant

movement to the downside in price we

would first want to see the market come

above the 50% level so we will only look

to sell a downtrend from the premium

area that means any of the price

movements that have happened down here

would not have been sold by us because

we are not going to expect this to move

into a significant move if we are still

trading in the discount area a 50% or

more Fibonacci retracement is going to

be required for us before we start

looking for larger positions to the

downside now the same would be exactly

true for a bullish Market but this time

we flip it on our head so just to give

you an example if we plotted this swing

low up to this swing High we've now got

our premium price level up here and our

discount price level down here now the

reason it's called a discount is because

obviously if the market retraces 50% of

this move we're coming back down to

lower prices which are more favorable to

buy from and the theory suggests as we

said that we would only only look to buy

this Market beneath the 50% level or

only when it has retraced into the

discount price range so leading back to

the current example then we are now

expecting that the market before we get

any significant downside will need to

trade into the 50% or higher so we'll

want to see the market come into the

premium Zone before we sell now if we

let the market run through a bit you

will see we trade just above that 50%

level bringing us into the premium Zone

and then we have a significant sell-off

and this is why you would not want to be

selling these earlier movements inside

of this discount range because it's

likely you're going to be stopped out by

a sweep when the market drives up

towards the premium area instead we want

to wait for the market to come into the

premium area and then find our lower

time frame opportunities to sell the

market and that is the premium and

discount price Theory so let me show you

with some of this price action here just

how effective this can be so if we were

to look at this larger swing move from

this high down to this low using the

Fibonacci retracement we would plot the

swing low to the swing high and you

would see the opportunity to buy came in

after we traded down into the discount

price region now we can even use it for

some of the lower time frame Fibonacci

as well so let's say we are looking at

some lower time frames and we want to

consider this swing low up to this swing

high so this being the high this being

the low you can see that after the rally

the market only reversed after coming

into to the discount region okay so it's

a continually forming pattern you'll see

time and time again and some of these

down moves as well we can see here we

have a sell move we can attach the FIB

tool from the swing High to the swing

low and only when we come into the

premium region do we sell same again

with this Next Movement down from the

swing high at this level here down to

the swing low here the market does not

reverse into new downward price action

until we trade into the premium area so

you see that this does work consistently

okay and it's a very very good tool now

there are going to be some examples

where it doesn't work we have one where

the market did not manage to retrace to

the 50% remember trading is a game of

probabilities nothing works every single

time but this does work the majority of

the time all right so one of the big

problems and the big questions with FIB

is how do we select which level to

choose from which one of these levels

should we use should it be the 61 the 78

the one or anywhere in between so I have

what I call the golden Zone this is just

the name for the best reaction Point

inside of the Fibonacci sequence now the

levels I use are not particularly

default but these are through my own

extensive testing over the many years

I've been trading and my own performance

in back testing and live trading as well

this is the best region for me this is

the best region that I would suggest you

to start using and start practicing with

to see whether you agree so the level

that I like is between the

0.71 and the

0.88 Fib levels so this area here here

is the golden Zone this is the highest

probability area for the market to react

between the 71 and 88% fib and in fact

for the majority of the trading I do

nowadays I'm only going to be taking

entries if they come from the 71 to 88

area now if your trading strategy is

different of course you can keep in mind

that premium discount Theory we

discussed and making sure you only trade

from a retracement past the 50% level

but if you're actually looking for

direct entries the 71 to the 88 is going

to be the highest probability point for

reversals so once we've marked a swing

low and a swing high in a market we will

then be looking for the market to pull

back somewhere into the 71 and 88 F

level to then continue its movements to

the upside all right so let's take a

look at this example here on gold we are

in an uptrending Market the market just

broke structure it's now validated a

swing High we have our swing low just

here if we use our Fibonacci tool to

Mark the low to the high we can see that

our golden zone is going to be situated

between this Lev level and this level

just here so this is where we want to

see reversals take place now what we

could do for our trades is place an

entry order within this area now for

this specific setup I would actually

favor the 78 I'll show you why so just

below where we marked the FIB we have

this dogee candle this indecision candle

this is what we would call a demand Zone

okay it's a consolidation area before a

large upward move in price I'm going to

teach you more about this in a bit if

the market comes back to a demand zone

I'm going to be looking for buys from

there so because the 7 71 level is above

this demand but the 78 sits just around

the top of the demand the 78 would be my

entry for this position so I would not

be looking for reversals anywhere higher

up than this 71 to 88 area Okay and then

we can start to bring in other

confluences I'm going to teach you more

about that later if we want to like that

demand Zone to add confidence but the

simple fact is any trade I take will be

coming from between the 71 and 88 level

so using that 78.6 that nice point for

an entry there you can see the market

comes down TAPS in and then we see the

more significant reversal okay so you

see we get the retest between that 71

and 88 and then the real Market move

begins now let's even take a look inside

of the trending structure here we could

have had some potential opportunities to

buy so after we retested the low here we

came up we formed the high we came down

we formed a higher low we came up we

formed a higher high so if we use this

small internal structure from this low

up to this high for a potential

confirmation entry after the fact we can

see there is opportunity between the 71

and 88 FIB levels there for a buy and

your buy could have looked something

like this with your entry on the 71

stops beneath the low now once again you

will see a very similar format so we

have this swing low to this swing high

if we plot our FIB levels here we are

going to see the market came into the 71

to 88 reversal area so you can see just

there that golden Zone was retested

before the movement away all right so

you can see how effective this is this

is the golden Zone this is the market

trading into it this is the new buy

commencing we saw the golden Zone retest

here we saw it here on this lower time

frame we saw it here on the lower time

frame again and then there were really

no more pullbacks for us to actually

Mark fibon at all now this Fibonacci

stuff is not just for low time frame

trading you can do this for huge

position I trades as well that is

because Fibonacci is a fractal concept

which means it comes up just as clearly

on the weekly and monthly as it would on

the 1 minute and 5 minute so when we

Mark the swing High to the swing low of

this huge movement in Euro USD through

from 2018 to 20120 we can see when the

market pulled back it was the 71 to 88

FIB region of which this reversal

started to take place and then take a

look at this after we had this selloff

from that high time frame weekly 71 to

88 golden Zone we can mark the swing

High to the swing low and you will see

that the second significant reaction

took place perfectly within that 71 to

88 FIB region so you would have used

this higher time frame FIB to find the

initial entry area and then you could

use this lower time frame FIB on the

smaller Trend here to identify the prime

entry point all right and here's a

market where we've just had a break from

lower lows and lower highs into higher

highs and higher lows now we're looking

for an entry opportunity now to identify

a good entry we could use our Fibonacci

tool we've got a swing low and now a

validated swing High just up here we

have that golden area the 71 to 88 FIB

region if the market can pull back into

that zone that is where we would look to

buy from so what we could do is use the

71 for our entry we could put stops

below the zone and then we could have

our targets up into wherever we wanted

them and now having allowed the market

to do its thing we saw the market return

to the 71 to 88 golden Zone before

getting that drive away so you can see

continually this is a very good way to

trade now I want to quickly show you

this if we take a look at this swing low

to this swing high and we mark this up

you're going to see that we don't get

the fill so the swing low swing High

here the market did not return to the 71

to 88 golden Zone and this will happen

sometimes sometimes you're going to miss

trades that is just how it is if you use

the 71 to 88 golden Zone some positions

will run away without you but here's the

thing if you don't use it and instead

you spend every single trade guessing

whether it's going to be the 23 the 38

the 50 the 61 the 78 FIB level that

forms the reversal well then you're

going to have a very hard time staying

consistent because you might get it

right one time but if you get it wrong

next time you're going to miss a trade

anyway well you might get in way too

early and take a loss so I just want to

get it in your mind that trading is

probabilities based and while this

golden zone is not going to be respected

for every single trade you take it will

be respected enough for you to build a

good system and it's a very easy way to

stay in consistent with your application

of Fibonacci now Fibonacci is best used

in conjunction with other Concepts in

this video I showed you it goes well

with supply and demand so if you click

the video somewhere on the screen right

now that will take you to a full class

on supply and demand and that is going

to change the game for you so thanks for

watching this one check that one out and

I will see you over there