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5.4 Parallel Channels Part 4

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Adept Level

Fibonacci Channels work similarly to parallel channels. However, they are best used on a higher time frame.
Using the Fibonacci levels you would use when applying the retracement tool, the Fibonacci channel will produce support and resistance lines.
It is not recommended to trade off these lines alone, but rather use them with additional confluence to support a high probability trade setup.
When applying the Fibonacci Channel tool, it may be helpful to turn on the magnet feature to line up the highs to the low.

Remember with Fibonacci Extension channels, always look for validation on these channels. If levels 0 and 0.618 are not respected with price action, then consider the channel invalid.