welcome to this tutorial on the Fibonacci
trading strategy that helps you to find
the best place to exit your trades i
don't think your people struggling with
way to get into their trades i actually
find it very easy i have no problem with
that that's actually one of my
specialties and i'll be happy to share
that with you as well on another video
but today's video is about where to get
out in this one I find is much more
challenging for more traders in fact
even a lot of veteran traders that I
talk to and someone who are retired say
that they never really mastered exactly
when to get out of a trade
i'm going to give you some help with
that using Fibonacci extensions and
we'll throw a little else in there too
but we got to keep this video under 10
minutes so let's get right to it yet so
i think that we're going to use the
Fibonacci extension tool is our primary
tool for determining where to get out
now when you do this actually i'ma go
back here and turn that off hope so we
go that's great
ok let's talk about how to drive this
thing correctly so you can do it many
different ways because we've actually
shows are all relative but the most
traditional way in the way that i
personally like to do it as well is to
take a low the lowest low and as you
start making an up move then go from the
lowest low to that high and then down to
the higher low so we're doing is we're
starting with a new impulse move a
reversal if you will because we've been
going down for a long time so then what
we do is we use it to three-point
drawing tool as you saw there you didn't
catch it just review you can rewind here
the beauty of video so use the lowest
low after move down and then we go to
the next high usually be a little bit of
a higher high than the previous swing
high that doesn't necessarily have to be
but it is actually good videos and then
the higher love the first higher low of
that reversal
so those are the three points 1
23 then instead of measuring fibonacci
retracement levels which would be below
this high actually draws levels above it
and so it is drawing targets so now
we're going along we're looking for long
and we're looking for potential profit
targets price levels where we might want
to take profits so let's look at how
well this works so the first thing is by
the way that not every level is going to
provide a place where the market stops
and turns around and put in a high or a
wave or a cycle but a lot of them do so
the first one that we always look at
that I look at is a hundred percent
that's called the measured move and
quite often significantly little this
time hey let's just call it what it is
the market didn't even acknowledge it it
just sliced right through it and
pretended like it wasn't even there now
hesitate at the 115 but it really find a
tie at the two hundred percent and what
that literally means the two hundred
percent means that from this level here
if we were to draw this horizontal line
from here and then go up
okay that's your initial impulse move to
the upside so you take that and double
it and that would be your two hundred
percent move i 100% will be the same
length of that love so that definitely
provided some resistance Fairless try to
keep our church neat here so that is the
place where we first get real
significant resistance then it comes
back down and where to find their
support at the 150 so sure enough for
these two levels were quite nicely goes
back up to 200 and a little trouble
there
so basically what's happening is the
market participants are aware of this
high and a little uncertain as to
whether there's going to be more buying
traction because let's face it market
already moved up two hundred percent of
the initial impulse move so little
harder for to continue doing
the psychological the mass psychology
behind that is that people are just
wondering if this is getting to be over
but now if there's too many people
already onboard other enough buyers to
come in and continue the market move up
a little hesitation their market goes
down three bars and then market decides
yup we believe it is again slices
through 300 but now this is something
that you'll see often with support
resistance levels if it gets real
aggressive like it does here then it
will kind of and it has to be an
aggressive like that's a very sharp
angle will happen is it will often then
kind of retrace little bit or even just
go sideways on pause because market
starts to CEO you know what that was
such an imposing moon maybe we got a
little emotional little too much more
rational exuberance and ground and alan
greenspan called it and you'll see that
kind of thing a lot so look for that
when you get the strong impulses the
same thing that happened here very
strong a vertical move and then the
market comes back to acknowledge the 150
because it sliced through it and comes
back to acknowledge 150 and again it's
an uncertainty thing of people saying
well there was a lot of energy there may
be too much and then we come back up and
we get up to
there we go all the way back up to 500
and we put in a way freedom now that's
an extended move County Wayne's the way
that I do it normally you get a wave 5v5
is the average but it can go more than
that i'm not using Elliot ways i use
well I humorously call them very waves
is basically higher highs and higher
lows but the high have stood also closed
above the previous high so that it
showing some commitment over there so
that's the average trend but it can go
further we don't limit the structure of
five way of like Elliott Wave does and
it really doesn't
let's just face backs really doesn't
come into a Fibonacci extension line
here but then it it does come back down
where they find support and support it
before
hundred which are really again just blew
through so if you're seeing the same
dynamic it blew through 400 did not
acknowledge it and then the markets like
oh maybe that was a little too
aggressive so come back and acknowledges
that level and then it goes up to the
five hundred percent level and comes
back down off of that
so these levels do work again of the
difference between Fibonacci
retracements and extensions or the
Fibonacci retracements are generally
considered entry point by point sell
place we get into the market not always
there a little more flexible than that
but that's a general truth worst bonacci
extensions like this that are marking
levels above our price currently is on
the hard edge of the screen
those are considered potential profit
zones now they don't work by themselves
you've got to put in other things with
them so momentum trend is a given
obviously the other important thing
though is cycles because price alone
price levels are very important as we've
seen though sometimes they work
sometimes state don't they do work a lot
so they are important to see but the
other thing you absolutely critically
need is time
so what I mean by that is there's two
axes on the chart over here we have
price and that's fine and that's what
these found Fibonacci extension lines
are is they are price levels but that is
only half the picture the other half of
the picture on a chart is what is time
so we got price over there let me move
my chair it up a little bit here so you
can see time and down here
I mean it's a two-dimensional object
right and so here we have time
very few people actually talked much
about time what's the optimal time to
get into the market with that the
optimal time well this was the perfect
optimal time right here I mean marks are
wave lows and so forth and then what you
want to see for an exit since we're
talking really specifically about exits
today is you want to see the confluence
of
time is our price here with some sort of
timing indication that okay we've got
the influence of time and price WD Gann
talked about that all the time and
that's where the magic life so price
levels are just half the picture you
have to then incorporate with that also
a timing tool so if you're interested in
the timing to allow use we're almost
done here it's already nine minutes and
this 10-minute video I'll be happy to
make that available to you it's more
than I can share in 10 minutes and we
keep all these videos to 10 minutes but
i have a free webinar we offer that and
give you the indicator and how to use it
and give you a nice about a 30 to 45
minute tutorial on how to use it setting
up the indicators really easy works on
any chart but any trading software but
I'm how to treat it is a little more
that party but it's not intuitive on how
to do it so i can give you a tutorial
and that's all free and so feel free to
send me an e-mail very top trading calm
and i'll send you information on when
the next webinar is for that if well if
we're still offering out about this
video stay free or so at the time you
see this video media no longer be
offering but send an email anyway to
check it out
all right well if you like this video
please understand that sure it's free
and take it with my blessings my gift to
you but if you got value from it to
actually do have a moral obligation to
pay it forward by clicking on the share
button below that's the best thing you
can do to share it with others pay it
forward if you will
now if you're watching this on youtube
the easy thing to do of course is click
the thumbs up icon below and then the
next let's leave a comment i love your
comments of responding to them and tell
me what you thought of it and maybe
request for other videos want me to do
that really encourages me I love having
the sense of community and when i get
that sense of community when i get
feedback from you encouraged me to keep
putting out tutorials out there for you
now I also want to share with you
another freebie giving away a lot of
freebies today it's my rubber band trade
and this rubber band trade has a very
very high win loss ratio and give you
all the rules for it
so that you can start trading it right
away i encourage you to obviously paper
traded or simulate test at first but I
can teach you the straight in about
twenty six short minutes I've got
another video that does that and you can
get that video absolutely free by just
clicking on the image in the top left
corner or if you're on a mobile device
click the middle
I with a circle around the top right
corner of this video and if you're not
watching this on youtube then there's
probably a link below or enough to
inform on the side anyway whoever you
requested any of those choices i will
personally emailed the video to you with
my very famous and very successful
rubberband trade strategy