4.2 Negative Fibonacci

The Fibonacci Retracement with negative levels is used to produce price levels that are external to the range you are measuring.
Negative Fibonacci levels can be used to identify additional confluence for trade entries, targets and take profit levels.
While in the past it has been possible to trade off these levels alone, it is not a good idea.
Always seek to find several factors of confluence to increase the probability around your setup.

The Fibonacci Retracement with negative levels is used to produce price levels that are external to the range you are measuring.
Negative Fibonacci levels can be used to identify additional confluence for trade entries, targets and take profit levels.
While in the past it has been possible to trade off these levels alone, it is not a good idea.
Always seek to find several factors of confluence to increase the probability around your setup.

Key Points of the Lesson
UTILITY NEGATIVE FIBONACCI
Used for moves that go external from the Fib pull range.
They add another level of confluences for entries and price targets.
If price goes external from these pivots, use the negative Fib for entries or targets.

IMPLEMENTATION
Always pull from left to right.
levels:
-0.236
-0.618
-1
-1.618
(-0.272 for stocks)

TIPS & TRICKS
Can be used with other FIB tools, such as the Fibonacci Extension, or horizontal levels.
The Fib level with the strongest confluence can give you the best probability trades.
The -0.618 is especially useful for crypto.

TAKE HOME MESSAGE
Used for external moves.
Strong confluence builder.
Used for finding price targets.

Levels Negative Fibonacci