every single day there are ebb and flows
in the market
if you look at the big picture there's
always this flowing
cycle of up and down most people just
assume that it's random and they try to
buy high
and sell low but i'm gonna tell you
right now
they are all fibonacci retracement
levels everything
with price action is a fibonacci
retracement whether it's on a one minute
time frame
or a four hour time frame and i'm going
to show you why in this video
welcome back to the channel everybody my
name is artie and this is the moving
average a show where we discuss
everything day trading to keep you
profitable on a consistent basis
so for those of you that have been here
since day one you know that i've already
done a video on fibonacci retracements
but because we have more people on here
and the fact that people don't like to
watch older videos i'm going to make a
new
upgraded fibonacci retracement video
which is this one so if you guys don't
know what fibonacci levels
are make sure you google it because the
entire universe is surrounded by
fibonacci retracements they happen in
nature naturally they happen in the
human
psyche they happen with the length of
your arm
to your nose and the proportion of the
height of your body
and if you're a crypto trader i've got a
little bit of a bonus piece of
information for you
if you stick with me till the end so
without further ado let's jump into the
charts i'm going to show you a quick
few examples and i'm going to help you
get your fibonacci retracement tool set
up
all right so this is my chart on
australian dollar us dollar on a five
minute time frame i have three moving
averages up
it is the 2150 and 200
smoothed moving averages as well as an
rsi but it's a little bit different if
you don't know how to use the rsi like i
do watch
this video right here basically i just
make one line at the 50. so like i was
saying in the intro there is
ebb and flow in the market constantly up
and down now this strategy
is very very useful especially for a
trader
that likes to hold a position for a long
period of time this is not a scalping
strategy
this is a intraday trading strategy
meaning that your position is usually
closed by the end of trading day
so if you're a new trader and you see
something like this you understand that
there's
flow in the market it goes up and it
goes down depending on supply and demand
and market opens and market closes
consolidation periods bull runs bear
runs
but there is actually a pattern to this
if you can use the fibonacci tool
properly now on the left hand side of
your screen
the third option down in the toolbar is
the fib retracement tool packet you have
pitchfork
shiv pitch all of this stuff right here
none of which i use but
if you do you're smarter than me just go
to the fibonacci tool it's in the middle
put a star next to it and that will
populate it
on your magically floating toolbar that
has all of your favorite tools on it if
you're not using this you should be so
once it's on your toolbar you just click
fibonacci
retracement tool and you just draw it
anywhere that you want
once you do you'll get this little
pop-up menu right here
and you're going to click on the
settings what i want you to do is change
your settings to what i have here the
colors the numbers
everything you're going to have 10
fibonacci levels the 0
the 0.382 0.5 0.618
0.764 0.88 and so on
and so forth exactly like this take a
screenshot
and make your fibonacci tool look like
this okay with this fibonacci
retracement strategy
what i want you to do is not overthink
it
not go for too long of a position i just
want you to catch the price action
back to where it started i'm gonna
explain that in just a second so
basically this
price action is from the 16th of march
and i can see so many fibonacci
retracements it's ridiculous
but i'm going to focus on these two
big ones this is a fibonacci retracement
and this is a fibonacci retracement
okay so the first one basically what
you're looking for
is one big fat
movement from up to down or
from down to up this is a non-stop
movement yes there was a little bit of
shakiness but it literally
in one direction non-stop these are the
huge moves that you're looking for a
retracement for
here's what a retracement does there is
massive momentum in one direction
and then it gets tired and has to take a
break as the price goes
up and then continues in that direction
because
originally there was so much momentum in
that direction causing these
huge drops and rallies in the price so
once you've seen one of these huge bear
runs right here and then it starts
consolidating and the price goes up
this is when you're like okay i'm
looking for a fibonacci level so you
take your tool
from the top to the bottom it does not
have to be
precise it doesn't have to be on the
bodies or the wicks or whatever
it just gives you a general sense of
where the price is going to retrace that
we're going to drag that out a little
bit and you can see the price went down
stopped right here so you already have
your top and your bottom and basically
on forex only with forex you're looking
for a
50 level retracement you can see the
price as it started consolidating
shot back up 50 level retracement it's
half
right so it retraced half of where it
went consolidated for a bit and then
went straight down to where it was
before
maintaining that bearish momentum so
what i want you to do
on my other fibonacci level i have other
take profit levels right here
take profit one take profit two and take
profit three
but what we're gonna do is only stick
with take profit one it is the easiest
to get every single time so the price
went up to the 50 level
you place your short position right here
stop loss to the 764
and targeting take profit one that was
56 pips
and that move happened in
17 hours now this is a five minute chart
so you're gonna place your order here
you're going to place your take profit
at the low point that it was
at and you walk away now we saw another
big momentum swing right here to the
upside
so again we take our fibonacci tool we
take it from the bottom to the top
we spread it out a little bit so it
covers the price action
we see the price went up starts coming
down
starts stalling out and consolidating
and then again
goes back up to the price where it was
before
now this one's a little bit different
and i want to explain why you shouldn't
get into
early on fibonacci retracements because
it could actually be a retracement on a
higher time frame so you need to be
aware of that
and not get in as the price is going to
the 50
but as it plays with the 50 and then
goes past it listen to what i'm saying
here
this right here is the 50 level this is
the 618
and this is the 762. the price went down
and started coming up playing again on
the 618
and then passing through the 50.
basically you should have your order
here
when the price is here so that if it
does go up this way
you are already in your position so
let's place our long position right here
where it should be
you should have an order placed in
advance if it goes past that price
and then comes down that's when your
order should execute as it's passing
through it so
again you target the high point that it
was at
with a stop loss at the 764 only on a 50
level retracement if you want more
details watch my other fibonacci
retracement video and you'll get more
information on that but if you're
getting it at the 50
your stop loss is the 764. again target
up at the high point that it was at and
that happened in
in 12 hours you got 57 pips off of
one swing the reason i say this is not a
scalping strategy is because scalping
strategies
are like quick entries and exits these
are long-term positions one of them was
like
17 hours this one was 12 hours so these
are set it and forget it positions
if you got stopped out you're going to
make your profit on the next one which
is gonna cover your loss
because these are about one to two risk
to reward ratio trades
so for every time you win you can afford
to lose twice
and still be break even so as promised
if you are a crypto enthusiast and you
day trade crypto currencies
fibonacci tools are the number one tool
you should be using when it comes to
crypto and buying the dip the whole
reason
i know anything about day trading and
technical analysis
is because i have been in the crypto
industry for a very long time i helped
another cryptocurrency
exchange get their youtube channel up
very high and i started trading
on crypto i didn't start trading on
forex and the way that i learned to buy
the dip
was with the fibonacci retracement tool
that's why i use it in my tool belt
every single time when i'm trading on a
long-term basis with my cryptocurrencies
so the reason it works so well this is
bitcoin usd
we are on a bull run we have been on a
bull run for a long time
but a bull run can't last forever and
when it starts going
down it will retrace at a fibonacci
level and then continue up
so we're looking for the big bull swings
we have
this one right here we have another one
right here
constant movement in the up direction so
you take your fibonacci retracement tool
you put it at the bottom drag it to the
top
and we got a 50 level retracement right
here again we take the next bull
movement
up from the bottom to the very top of
that move and we got a 618 level
retracement right here
now you have to be looking at a higher
time frame
when it comes to these pullbacks on
cryptocurrency so you get the big
picture
you're trying to buy the dip you're
getting that huge rally
it starts dropping down everybody's
panicking and selling off
and it's going to go back up because
it's crypto and it's
crazy right now so that's where you buy
your dip if you're looking to get
more cryptocurrencies in your balance
you need to buy the dip at a lower price
because you're going to get returns
quicker than the average person just
nonchalantly investing wherever
now that was on the one hour chart let
me show you what it looks like on a
daily time
frame you can see we had this big huge
bull run right here we have another one
right here and another one right here
and another one
right here every single one of these is
a fibonacci retracement level
as you can see here we had a 50 level
retracement a 50 level retracement
a 618 level retracement and this one
stopped out but basically it's a
retracement on a higher time frame
so out of all of these you would have
gotten stopped out once
on every single buy the dip so this is
not
a intraday trading strategy for bitcoin
or cryptocurrencies this is a long term
position holding strategy to help you
find out when
to buy the dip buying the dip is the
most
lethal thing when it comes to getting
value of your cryptocurrency investment
in a short period of time
compared to again just nonchalantly
buying bitcoin whenever
so i don't use fibonacci that much on
forex because i'm a scalper with forex
but i use it every single time i buy
any amount of cryptocurrency i'd love to
know in the comment section
do you own any crypto do you have it
long term
or are you a crypto day trader leave it
in the comment section down below
and also would you guys like to see live
technical analysis like a pre-london
session
live stream i was thinking about doing
it was a suggestion from a viewer so if
you guys would like to see that
let me know in the comment section down
below if you are still watching this
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