in this video i'm gonna take your
trading to another level incorporating
price action trading with a fibonacci
retracement to get you that absolute
ultimate entry in every one of your
trades
[Music]
welcome back to the channel everybody my
name's artie and this is the moving
average a show where we discuss
everything day trading to keep you
profitable on a consistent basis the
main strategy that i teach on this
channel is actually a rejection off the
21 moving average as you all know price
action is king and when you can tie in
price action signals like zones with
multiple wicks breaks of moving averages
and re-tests as well as incorporating
what i'm about to show you in this video
it's gonna like really dynamically
dramatically dangerously change your
trading so let's just get into the
charts now just to clarify something
really quickly this is an intermediate
to advanced trading strategy if you
don't know anything about day trading
please start with my beginner playlist
and then come back to this one as you
guys know if price is trading below the
200 we are looking for short positions
this is a downtrend and we are running
with price action what you want to see
before you get into a trade is all of
the moving averages line up that i
recommend the 21 the 50 and the 200 and
what you want to see is rejections off
of the 21 moving average in accordance
to what the rsi is doing if the rsi is
showing downward momentum meaning it's
below the 50 level you can comfortably
get in on short positions now fibonacci
levels can be used multiple different
ways as i've explained in several of my
videos like the ones where i used it on
cryptocurrencies bitcoin and ethereum
but essentially once you draw out the
fibonacci tool it will look different
than mine you can set this up the way
that i have it by copying these settings
right here take a screenshot adjust it
later whichever way the price is going
you can either have it go up for an
uptrend or down for a downtrend but
essentially what we're looking for
is one big move up and then it retracing
to either the 382 level the 0.5 or the
0.618
rejecting off of that and continuing up
to take profit 1 take profit 2 or take
profit 3. this is the general theory
behind the fibonacci retracement levels
but one of the things you can tie in
together with the fibonacci retracement
levels is rejections off of key support
and resistance levels
and or rejections off of the most
important moving averages like the 21
the 50 and the 200. so for example say
the 21 moving average is coming up and
this line right here is still the 21
moving average and it rejected perfectly
off of that you are looking at a great
fibonacci retracement level right here
at the 618 as well as a rejection off
the 21 moving average meaning that you
can get a trend continuation trade and
target the previous high point as an
almost guarantee and then the other two
take profit levels can be trailing so
how do you know if it's going to retrace
on the 382 the 0.5 or the 618 well i'm
going to show you right here and my
theory behind it so with fibonacci
levels and setting up the tool the way
that i have it you can see that the
actual price at these levels is right
here but what i want you to think about
is fibonacci zones so not concrete
absolute prices so what you can do is
actually change the settings and make
them thicker lines that thicker line
will give you more of an idea that
that's a zone that you should be
targeting not an absolute entry price
like specifically so if we do this as it
broke through the 200 period moving
average and is moving down to the lowest
point before it started coming back up
so this first run up was too far away
from the 21 moving average so you have
to have patience and wait for a good
solid rejection up and a pullback back
up to that 21 period moving average and
you can see right here as the 382 level
and the 21 converge
that was the area right here that we saw
price continuing downwards the reason
i'm starting on this example is because
of the original movement
this was straight down this was
extremely extremely bearish having
massive momentum to the downside this
right here is a 90 degree angle this
right here is a 45 degree angle this
right here is about a 15 degree angle so
right here
this yellow line that's about a 45
degree angle
this is way way steep it has a lot of
downward momentum the more steep this
line is the more likely it is only to
retrace on the 382 if it's at a 45 it
can comfortably go up to the 618 so the
more severe the move down or up the more
likely it will halt at the 382 rejecting
near the 21 period moving average as we
get further down this movement you can
see that the price started to slow down
it's not cascading down it's starting to
slacken out more taking our fibonacci
tool out at that point it retraced at
the 50 level coming down to our take
profit one now if you're wondering how
to tell where these price pivot points
are
just refer to my previous price action
video where i showed you candle
formations so for example right here we
had a three line strike three candles up
one engulfing candle in the opposite
direction rejecting off of the 21. you
can also look for zones with a bunch of
wicks for the reverse trade pulling back
up to the moving average and again areas
with a bunch of wicks and again the
engulfing candle pattern creating a
perfect double bottom right here so what
i want you to keep an eye out for when
entering your trades is either an
engulfing candle pattern at a fibonacci
level
and the 21 or the 50 or an area like
this with a bunch of
wicks this is my new bunch of [ __ ]
strategy if you guys are following me on
telegram i was actually posting a couple
of trades lately but i've been primarily
looking for three or four wicks on a
five minute time frame at certain levels
and getting into those trend
continuation trades this one right here
got me about two thousand dollars in
profit the reason why i said this is
intermediate to advanced is because
knowing moving averages knowing
fibonacci retracement levels knowing
price action candlestick patterns all of
this information i have already taught
in my videos and this is just bringing
it all together then taking this and
incorporating it with support and
resistance levels as well as which way
the price is trending you will become a
lethal trader once you master all of
these aspects like i said before in a
previous video the more confluences you
have the more confidence you have in
your trade so if you guys want more
clarity on all the things i discussed in
this video i actually made a short
playlist with a few videos right here
and if you guys like this video and you
got some value out of it you like the
way that i teach make sure you're
dropping a like on these videos and
subscribe if you have not already thanks
so much for watching and we'll see you
in the next video