4.1 Fibonacci Retracement

The Fibonacci sequence and the golden ratio exist everywhere in many forms. From human DNA strands to the Milky Way Galaxy, the sequence known as the golden ratio seems to appear everywhere.
It should be no surprise that the Fibonacci sequence takes form in trading as well, seeing as that is under the umbrella of everywhere.
But you may be surprised to find that the Fibonacci golden ratio plays a significant role within price action and Technical Analysis, in a predictive manner.

The Fibonacci sequence and the golden ratio exist everywhere in many forms. From human DNA strands to the Milky Way Galaxy, the sequence known as the golden ratio seems to appear everywhere.
It should be no surprise that the Fibonacci sequence takes form in trading as well, seeing as that is under the umbrella of everywhere.
But you may be surprised to find that the Fibonacci golden ratio plays a significant role within price action and Technical Analysis, in a predictive manner.

It may sound bizarre; that a sequence that can be found everywhere in life itself has made its way into Tradingview and charts, but behind those charts are real people. Behind the price action, it's real people making it happen. Trading is a game of humans exchanging buys for sells and sells for buys.
So it is only fitting that the same Fibonacci sequence that appears in our DNA, would also appear on our charts and give us the golden edge over the rest of the market. Of course, how to find that golden edge and use it to your advantage is something else entirely.
We can use the Fibonacci Retracement tool to highlight price areas with strong significance in both uptrends and downtrends, on both HTF and LTF.
It can provide a trader with great confluence to identify a strong trade entry or take profit. Fibonacci Retracement is a must-have in your confluence toolset.
This series will reveal the full power of Fibonacci being applied to your analysis, study this without distraction, put it into practice, and see for yourself.


Key Points of the Lesson
FIBONACCI RETRACEMENT
One of the primary trading tools, it is very powerful.
Used to predict future levels for likely targets and reversals.
Used as a building block to find confluences together with other tools.

IMPLEMENTATION
Always pull from left to right.
Important levels:
0.236
0.382
0.5
0.618
0.66
0.786
0.886
For resistance ⇒ pull from high left to low right pivot.
For support ⇒ pull from low left to high right pivot.

CHAMPIONS CHANNEL – CC
Champions Channel (CC): Fibonacci level 0.618 and 0.66.
Use different Fib pulls to find confluences.
Use different tools like horizontals to build even more confluences.

0.236 AND 0.382 FIBONACCI LEVELS
0.382 Fib level is generally a support level in a strong uptrend. ⇒ if lost, expect a retracement to the 0.618-0.66 area (CC). ⇒ if the CC is also lost, the uptrend can be over / we can expect an extended sideways consolidation.
Reclaiming the 0.236 Fib level after a strong downtrend gives confidence a potential bottom can be established.
For stop losses use market structure.
Example setup: CC + weekly level.

TAKE HOME MESSAGE
Use Fibonacci as a building block.
Always from left to right.
Champions channel or CC is the most important level.

Levels Fibonacci Retracement