boom boom so good afternoon everybody I'm biker boy D with the moon the profit Squad and I welcome you to Zamunda University I want everybody to pay attention take notes and please please please ask questions ask as many questions as you want ask for examples ask me to look at a chart that you may have questions about but please ask questions so with that being said let's get into it so today I will be teaching you guys about Fibonacci retracement so for Fibonacci retracement there's something called a Fibonacci Sequence and a Fibonacci sequence is a set of numbers whose terms are the sum of the previous two terms so in other words if you add one plus one that equals two if you add two plus three that equals five five plus eight thirteen and so on and so forth so that is the sequence of the of Fibonacci that's the Fibonacci sequence so when you take that sequence and you make squares out of them it creates like this spiral looking uh this spiral figure so a one by one equals a two by three uh a three by five equals a eight by thirteen because you add the the eight and the five and that gives you that not very important but um you know you get some background knowledge so Fibonacci Sequence isn't just some made up figure it's actually found all throughout nature um it's found in building structures as you can see flowers are everyday life um even our fingers they Bend at Fibonacci Sequence points so Fibonacci is embedded in everything in nature real life um and just pretty much anything you can think of Fibonacci is in the Fibonacci sequence is built into it and here is another example of a Fibonacci Sequence spiral this is a really good example I like this example Big T So within the Fibonacci sequence you have something called the golden ratio and this is also known as Phi now Phi is a number that is equal equal to approximately 1.618 you get this ratio by dividing a number in the sequence by its preceding number so for instance if you divide uh 5 divided by three you get approximately 1.618 13 divided by eight you get approximately 1.618 now the larger numbers you divide the the larger numbers you have this ratio for the closer to 1.618 you get so if you divide it 55 divided by 34 it'll be closer to 1.618 then three divided by 2. so once again that's you know none of this is important but I think it's you know it's nice to know the origin of things so you know where it comes from and how it can be implemented and traded so Fibonacci retracement levels which derive from the Fibonacci sequence are horizontal lines that indicate where support and resistance are likely to occur each level is associated with the percentage the percentage is how much a prior move and the price has retraced the Fibonacci retracement levels are 23.6 38.2 618 which is that golden ratio and 78.6 the 50 is also used but it is not a Fibonacci Sequence um 50 is the equilibrium for anything so that's why that's thrown in there okay let's look at some examples on trading View can everybody see my screen okay my chart check the chat yep okay cool everybody can see it so before we get into exactly how to draw them on a chart I want to show you how you can Implement how you can implement the um Fibonacci retracement levels so before I do that I'm going to show you the levels that are most commonly used and the levels that I use so the first level would be your 0.236 now the 0.236 isn't that significant it's not a significant level the only time it's really significant is if you're already in a trade and let's say you're in a swing trade and you have three green days and you finally get a red day um you will want to see it make a slight retracement to a a 0.236 and continue in the trend that I was going in so this would be an indication of a slight a very slight retracement going back into trend the 382 is a level of a reversal so the 382 also indicates a strong Trend so if something retraces to a 0.382 level that is a strong turn and it has a good likelihood that it will reverse back into churn so tto in other words now your 0.5 your 0.5 is a very high likely level of reversal so when something comes back down to a 0.5 it's likely to bounce off the 0.5 and then go back into the original churn the 0.618 is like we mentioned before that comes in the the golden ratio the 618 is the most likely level of a reversal back into Trend so when you see something come to a 0.618 it has a very very high likelihood that it will reject that level and then reverse back into the back into the opposite direction the 0.786 this would be your last line of defense so something breaks through a 0.382 it breaks through at 0.5 it breaks through a 618 and then it gets to the 786 if it does not reject the 786 it is more than likely going to reverse and continue in a downward um Trend so if you see something break below a 786 you can almost bet that it's going to continue down it really doesn't have a chance to um reverse and go back up so how I want you to think about this is like tug of war so we have a 0.5 right so if you think about tug of war let's say you have six people on the left side six people on the right side the people on your left side are your buyers the people on your right side are your sellers so they're fighting back and forth right so you're 382 if they came to a 382 that means the buyers have a lot of control and they have a less distance to go to to win right you have tape in the middle or you have something in the middle to show you who's winning the 0.5 if it's at a 0.5 that's when you see that tape in the middle it's not really moving both sides are pretty equal so whoever takes control they're going to be the ones that win the 0.618 that will be similar to you ever seen tug of war when you know one size starts winning a little bit they have a little bit of momentum and then the other side just pulls out of nowhere and they win that would be like your 618 that means that the sellers had control they reached this 618 level and then the buyers took it up to go back into Trenton and then the 786 you just holding on for dear life if you don't if you don't make a push in that last little second that last little momentum bump then you lost so that's that's a good way of looking at it um to bring it to like real world examples so I'm going to show you how to draw fibs and there's a couple different ways that you can do it so last week we talked about ttos and reversals we talked about swing highs and swing lows so one way you can draw a a fib is each leg and what I mean by leg every time you have an impulsive move like this and you have a retracement that would be considered a leg so let's label that and I like capital letters right so this would be our first leg so if you were watching this and you've seen that we had bullish momentum and then we had a reversal candle let's say it's a shooter or it's a bearish engulfing candle which would be a three bar or some type of reversal signal right here and we started pulling back we will want to see where is it pulling back to so what we do is is we will take our FIB in an uptrend you go from the swing low to the swing High and then you will see where this possibly could reverse so where we really want to see a reversal is the 0.5 and the 0.618 this area right here is known as the golden zone so anything in this Zone has a very light a very high likelihood of reversing and going back to the upside it also offers a high risk to reward because you can set your stop loss below a 618 with the knowledge that you know that if it bounces off of 6018 most more times than not it goes up so if it continues down you probably don't want to be in that trade because you could be setting up to continue going down um so the 618 and the 0.5 they give you a high risk to reward ratio they also let you buy [Music] um your options or the stock at a discounted rate so you have to think when we had this impulsive move right here people were buying along the way so that means people started buying up here they were buying up here they were buying up here and then people started taking profit they started selling off a little bit people might have tried the short they had bad times shorts so they're selling right here but you still had those buyers that were right here too so if you buy it at a right here you have it at a discounted price instead of those people who bought it up here you bought it down here with the anticipation that it will go back up to the upside AKA TTL so that's why the strata is a beautiful strategy because we can buy things at a discounted price now with Fibonacci retracement tool you don't want to use it solely by itself you want to use it in Confluence with something else so like a support or resistance or um the Strat is pretty much already built into it so if you use this with this with the strap let's say you have a hammer off of the 0.5 right you know that you can use a 2-2 reversal backup to the upside so you want to use it with something else you want to have some type of confirmation that um it's going to go back into your favor you don't want to just use it by itself so that's one way of doing it is using it from a one leg from a swing low to a swing High and to find the Fibonacci tool you come over here to your tools on the left side you click fit retracement and I will bring up the values that I have if you have a notebook or whatever you can write them down and I will show you the values if you miss them you can customize this however you like these are the numbers that I used um but you can make them any color you want you can make them um you can make it a background if you want to but I'll give you guys a second I'll leave these up if you want to screenshot write them down whatever the case may be but these are the value levels of Fibonacci retracement do we have any questions about that so far before um I continue hey so does it matter if the the values are crisscrossed like that or can you just go down that first line with all those same values or you have to crisscross them like that it doesn't matter you can have them down in a straight line because all it's going to do is once you check it it's going to make it goes from least to greatest it doesn't factor and if it's on the left or the right okay okay cool thank you no problem good question and I like to extend my lines too you don't have to I like to extend my lines right so I can see future price action but if you don't want to you can you can have them um just wherever they're at and drag them over if you want to but I like to extend my lines right so I can see future price action okay so with this strategy like I said you can do it every leg you can put your feet tell us how you drew that again really quickly yes I can I always mess up when I do it that's okay so in an uptrend and it's very important to note that it's in an uptrend you go from the low to the high that's only in the uptrend and I'm going to show you a downtrend also but in an uptrend you go from the swing low to the swing High and you know you've done it right if the zero is at the top and the one is at the bottom and the numbers are ascending going downward so they get greater as you go down because you have to think you you're looking for the levels um you want them to look like the 236 the 382 the 0.5 you want to see or retrace to so you want these numbers in this direction so in an uptrend you know you're doing it right if you're a zero is at the top and your one is at the bottom awesome thank you okay so now that we have that leg out the way let's say we started continuing our uptrend so then we have our next leg it goes from here to here right the next thing you do you could just put that fit retracement from this swing low to this swing high and see where it it comes down to and you can just keep continuing to do that so right here we have another area of Interest where we could possibly have a reversal back up to the upside so let's say we do get that reversal from here back up to here and then it retraces again right then you would just walk it back up you would just walk it up again and see where you would get a potential bounce and the 382 is an area of potential bounce the best areas for a bounce to back up to the upside is the 0.5 the 618 and if it gets down to a 786 and it's showing you strength to go back up to the upside that's also a good place um I usually don't I don't look for 786s but if I'm presented for with the 786 reversal back up into the upside I will take it um but that's not something I necessarily look for okay so this was leg one this was leg two and then this was leg three and all we did for each leg as we wanted to see where price could retrace to that's why it's called the Fibonacci retracement tool so we went from a swing low to find this retracement we got an area of Interest we will look for a reversal candle back up to the upside then it took out this swing High it took out this high right here which is very important it has to do that so when you have a reversal candle for it to be a successful tto you wanted to take out the previous high now if you're day trading and let's say you have a strat PT is right here cool you made your money for the day but your overall Target where you will want to see price go to continue the uptrend is it has to take out this High you have to have higher lows and higher highs so this was the previous high this low is higher than this low we have to take out this High next to continue an uptrend which it did right so we've seen it retraced here cool still in it and we're going to take it to this next high that should be your immediate um overall Target if you have Runners you can continue the trend now if we're looking for the next leg the next point of Interest we will go from this swing low so this swing low right here to this swing high right here and that will show us where the next point of interest is we get another reversal candle or reversal pattern we take it back up and once again we want to see it take out this previous high for it to be a successful tto and continue trend if you need to draw trend lines to help you that is also a smart idea so you can use it in Confluence with your fibs so like for example right here we went up we started retracing to a point of interest that 0.5 the 618 Zone it's also a trend line right here which serves as a support so if we bounce off of support and a fib entry that is two confluences that we can put together for a better probability trade back up to the upside does that make sense to everybody so far check the chat um somebody said why are those specific numbers the values that's not really that important but um the 0.5 isn't a fib sequence the 618 um like I mentioned before that is the number you get when you divide a number in the sequence by its um preceding number so eight and five um that's how you get that number 382 I believe is a number in the sequence and two numbers previous of it and then the two three six is a number in the sequence and three numbers previous to it so that's where the values come from um not that important to know but if you must know that's where it comes from okay so the next way to use fibs is if you want to capture the overall move so the first example we had a we were going for each leg retracement now as we know stocks doesn't just go straight up forever they aggregate their way up and then at some point they reach exhaustion and then they start coming down so when they start coming down you want to see what areas that it could possibly come down to after a downturn to catch the reversal back up to the uptrend so if we had this run up like this and then we started seeing that we started putting in lower highs and lower lows right we want to see um key areas that we may retrace from to continue a reversal back up to the upside so to do that instead of going from each leg of Swing Low to swing High you would go from the original swing low the lowest swing low that started to move to the most current swing high that ended the move okay so I went from this low I skipped over all of this price action and then I went to the last High so I'm gonna say that one more time so you guys see it I went from this low right here to the high of the overall uptrend so what that does is that shows me where price could come down to possibly catch a reversal here to go back up to the upside and and start a trend a series of higher highs and higher lows okay and if you can see I mean that was just my path tool but I hit the 0.5 to a T um so does that make sense to everybody so far before I move on before I show you a excuse me before I show your downtrend does that make sense to everybody showing a retracement for a leg versus showing the retracement for a entire move check the chat okay yes I can say that one more time I know that was that was probably kind of fast so in the first example we went from a swing low to a swing high of a leg right and what we're looking for out of that was a retracement for an entry to continue up into the next leg we wanted to Target this high right here and we got our move now if we wanted to add into our position or let's say we missed this move right here and we want to see where the next move up is then we would take our Fib from this swing low of the previous leg to this swing High we would see where it retraces to and then we would take that move back up we will take that move back up to the upside now if we see that we start making lower highs and lower lows which signifies a downturn now right if we start seeing this action going on we will want to see the overall move because now we don't care about the legs that's irrelevant at this point we want to see the overall move this this this range think of this as a range so our the bottom of our FIB is at 351 the top is at 372. so that is a range we want to know where the likelihood where are the likely points of reversal within that range so to do that we go from the beginning of the range to the end of the range and then we start looking for possible reversal points our points of interest would be the 382 our points of interest would be the 0.5 our points of interest would be the 618. and if it gets down to a 786 and reverses from there that will also be a point of Interest does that answer your question okay so now I'm going to show you a downtrend get rid of all of this so we know in the uptrend we have a series of higher highs and higher lows now in a downtrend it's the opposite we have a series of lower highs and lower lows right so the same concept applies so if we're looking for a leg if we were selling off this was bearish right we had some type of pullback right here let's say we had a pullback right here we would want to see where did that pullback happen for us to catch a reversal back to the downside so in a downtrend you attach your Fib from the top of the of the the swing High to a swing low so in an uptrend you attach from the swing low the bottom to the top and then downtrend you attach from the top to the bottom and as you can see the values have reversed you know you're doing this right when the one is at the top and the zero is at the bottom that's how you know you've plotted it right so you can't just go from the bottom to the top in every Trend in an uptrend you have to go from the bottom to the top and a downtrend you go from the top to the bottom let me check the chat okay so now this is our first leg so this is leg number one of the beginning of a downturn if we have this retracement right here and it's around the 618 area which is a point of Interest we will be looking for if you're a strat Trader if you're a support and resistance Trader you will be looking for some type of reversal off of this area back to the downside so what you will want is for it to reverse from there come back down creating a new leg like that so this here you can catch a reversal move to Target this low this swing low now so for it to continue as a downtrend you want to take out previous lows this was a complete um this completely took out the previous low so you will be able to take profit here you can leave Runners however you want to play it but this will be your overall Target that previous swing low did I lose anybody there and I'm going to stop to ask questions a lot because I know this is very this can be very confusing especially this is your first time what happens if it just hits the 382 there is that what what does that signify if it doesn't go as up to the 618 is that still yes yes layout or yes to answer your question to 382 is also a point of interest if it hits a 382 it is a very if it hits a 382 and it's showing signs of of a reversal or tto at the 382 that is a very strong Trend okay so the further down it goes it's a weaker Trend but it's a it's still a higher likelihood for reversal it's a likelihood for exhaustion in the opposite direction um and they also offered the best risk to reward so if you took let's say you took a 382 like let's say it got to a 382 right and it started coming down a little bit but then it played around a little bit and then it went to a 0.5 and then it went to a 618 before reversing and coming back down into the intended direction right since you bought it at not such a a discounted price and yes you will be uh at a loss until it makes this move you can play a three two but you definitely have to look what the chart is telling you if it's setting up for a reversal off of three two that is still a good point of interest to take a trade gotcha thank you no problem um so yes this would have been a successful one we had a 618 bounce it took out the previous swing low right here and now it is setting up to do the same thing so I will show you real examples I like to use the path tool first because it just kind of It kind of just simplifies everything candles can be confusing sometimes so you mind doing it on Amazon yeah uh after um after I'll go through these examples I'm going to actually take requests from charts from you guys so okay cool okay I will keep that in mind so now I'm going to ask you guys questions um so first we're going to look at this downtrend right here okay so we see we have an obvious downturn and let me turn my magnet back on we have an obvious downtrend correct so since we are dealing with a downtrend what what I what how would I want to use my FIB would I want to take it from the low to the high or what I want to take it from the high to the low can anybody answer that for me to the low high to the low exactly so this is all um this price action right here is all hindsight but let's say we first started seeing signs of reversal right so right here we had an uptrend correct this was an uptrend we were making a series of higher highs and higher lows but over here we started noticing hey when we had this low right here we did not take out that high which is a requirement to continue the uptrend we did not take out this high we put in a lower high so that is the first sign of a downtrend of a reversal back to the downside so once we put in this lower high and then it confirmed it by putting it took out this lower low it took out this previous low that confirms the downturn right so now what we want to do is when we notice this downtrend we want to see what our possible areas for it to retrace whenever they start buying it again to sell it back off so what we would do is if we're looking at this leg we will go from this high like you guys said to this low and as you can see we have the 0.618 and I marked mine gold because it's the it's the golden ratio um it's this is the golden zone right here um so as you can see we had a 618 uh rejection right here not only do we have a 618 rejection right here we also rejected a trend line a downward trend line okay and if we look to the left let's see if we have a support and a resistance so right here we have some we have a this was a previous resistance right here and you can see how we reacted to that level right we also had Yep this was a strong resistance so once we broke through this this was once resistance we broke through it was supposed to become support after that it broke through once again to the downside then it came back up it didn't even retest it it broke through so if we seen that we had a 618 right here with this big shooter candle we would be plotting to take this back to the downside so I would be thinking we had a 618 rejection we have a shooter candle which is a sign of reversal right and we also are putting in lower highs lower lows so if we go two down after this then I know my immediate Strat Target would be this right here this would be my immediate Strat PT but if I wanted the overall move this previous low right here would be my overall price Target My overall this is where I want price to go does that make sense so far perfect if you are charting the fibs on a daily what time frame are you looking at when you're actually in the trade I'm looking to get out um so they said if I'm charting the fibs on a daily what time frame am I looking at when I'm actually in the trade so when I'm looking at fibs like this this is my pre this is my prep work this is my the night before my nightly routine I'm seeing what things are hitting a 618 or what what I'm looking at actionable signals and things like that I'm building my confluences when I'm actually in the trade I use them the same exact way but on a lower time frame so once I enter I'm looking for possible areas for retracement to even to either take profit to add into a position or to know to just stay patient and hold in that position because it's only making a retracement it's not reversing on me it's just making a pullback um so I once I get down to a smaller time frame I do the same exact thing um just on a smaller time frame so yes we had our 618 bounce here it flushed this was a successful trade we took out our liquidity down here this was a successful trade what what lower time frame do you generally generally gravitate to or do you use multiples I use multiple so when I'm trading I'm looking at four screens that's preferably how I like to do it um I'm looking at a I I really like moves off of the 15 minute the five minute gives a lot of fake outs but with the five minute I'm also looking at a five minute two because I want to see how the 15 minute candle develops because 35 minutes equal a 15 minute so if I'm looking at how it develops on a 15 minutes I know that equals a I'm sorry if I'm looking at how it develops on a five minute um I know that will equal how my 15 minute candle is going to react okay I'm also looking at a hour and I bounce in between a day I'll pull up the day just so I can see you know like if we triggered two up on the day I want to see how we how we looking on our on our range so I'll pull up a date also or four hour just how depending on how I'm feeling but mainly I'm looking at a 15 for Price development um I'll look at a 30 to help stay in a trade 30 minutes really help you stay on the trade okay okay uh I got a quick question I'm sorry yep no you're fine it says we're talking about time frames you know and stuff like that would you draw multiple or can't could you draw multiple um on different time frames so say for instance you draw one on the year and then draw another one on the uh quarter then draw another one a month cut that with that uh be something that's possible to do as well absolutely you can do that I will say so I'll write down all of my analysis um when I'm like before I take a trade so I have it written down I don't want to have that many fibs up because it'll get confusing like you'll see a six one eight and you'll say where is that from what period is that from so I will already have that written down so if I'm looking at a monthly chart and it's at a six one eight I will write down the level of the 618 on a monthly so I can keep that in mind yeah but then when if I go down to a daily it'll be a different level got you the higher time frames will always tell you where the actual trend is the overall trend but the smaller time frames just help you you know get entries and things like that appreciate that so to go back to our example of the up the uptrend you see how we have this move like this and then we continue up we have like this kind of motion right here so you can put fibs on each retracement to see um to get to gain entries and I do want to stress not only do you own you want to use fibs in conjunction with something else like another strategy another indicator you want to have confluences when it comes to Fibonacci retracement tool but you can only use fit you use fibs in Trends and uptrend or a downtrend if you are trading sideways a Fibonacci retracement does not tell you anything so if you look over here and you notice that we have this um this this range right here how we were just trading sideways you can't put a fib anywhere because you're TR you're just going up and down there's no there's no Direction the FIB has no purpose there the FIB has purpose when you are in a trend okay I wanted to reiterate that so if we're looking at the uptrend portion one of our confluences could be we were stuck in a Range we broke out and then we retraced back to a trend line after breaking out of a range so we can look at it like that so one thing we can do is put our FIB down here put it to this swing high and it's hard to figure out where you want to FIB when it is in a in a Range like this when you're looking for that swing low you can either pick one or you can just go to like you can make it like a like a like a support level so wherever the support was um you see how like we have a lot of touches right there you can put it there you can put it on this swing low it's really you know it's really relative of how you want to look at it you're really looking at this as a range like a Zone more so than just the line so you're looking at the zone so for me I picked this swing low this was the most this was the the this was the most reactive swing point so I picked this level right here I drew it from the bottom of here to the top of this swing High we've shown we've seen signs of a reversal we had one two three four two ups four green days we got our first sign of a reversal so I would be thinking puts I would be thinking this is a put entry and if it confirms if we go two down this would be my immediate Target right here right that would be my immediate Target if I was trying to short this now if we were looking for a reversal backup to the upside because this is a low probability if you try to short in an uptrend you have a a lower probability of it of you hitting your target this worked out in this favor so instead of trying to short it I would be looking for a reversal back up to the upside or a tto back up to the upside so it gave me signs of a tto with the shooter candle it confirmed it going two down it did not take out this previous low right here so that is telling me that it is a better trade to go to have this bounce off the 0.5 the bounce off this trend line to go along here and looking for a 2 up to Target this high does that make sense but you're saying that you you would you would draw the fibs at that first sign of a Progresso at that um shooter kennel right yes I would draw it here um I would draw it here because this was this would be my first sign so let's say I caught it on this day right let's say I only trade spy and I I trade spot every day and I see that it shows me signs of reversal the first thing I would do is I would put a I will put the FIB to the high now if it goes two up then I'm wrong I'll just keep walking it up but this is showing me signs of reversal so since the showing signs of reversal I want to see where could it or I'm sorry I don't want to say reversal it's showing me signs of it retracement so if I'm seeing those signs I want to see where could it possibly retrace to to give me an entry to go back up to the upside now if this goes too up after I drew this FIB there cool I was wrong I'll just keep following it until it gives me a two down keep walking if you keep walking that fears up today keep walking up to that top level right you can just keep walking it up that is that is a that is another thing you can do it you can do it like that okay um but let's say we didn't catch it on this day let's say we are doing analysis and we caught it on this day like this move has already happened now we can say we already had our retracement our retracement was off of a 0.5 it's at a trend line we had a little trend line break but it's off a trend line and so if if we go two up tomorrow that will confirm this being a higher low and I know that my target would be up here because the chart is telling me that we are still in an upturn we are in an uptrend right now so if I know the rules of an upturn I know we have to have higher higher highs and higher lows we already put in the higher low so what would be the next thing to do to put in a higher high and MOB mentality is I am right until proven otherwise I don't want to say I am right but I want to say this is a tto until proven otherwise so until it shows me that this is a reversal it has to show me that it's starting to put in lower highs or lower lows but until that point I'm going to assume if we already put in a higher low that the next thing to do would be to put in a higher high okay yep makes sense so that is for an uptrend and now I want to show you it on a weekly time frame move this out the way so let's go to a weekly time frame if I can find my candles so boom you see how we have this uptrend right here so we had an uptrend over here right and then we had a reversal this was a very strong reversal after the reversal we started putting in higher lows and higher highs so we know that this is an uptrend okay so if we wanted to catch this first leg move right here let's take our our um put my magnet back on let's take our Fib from the first swing low that started to move to this swing High and that is a two through six we are trading sideways right here I don't really like this price action um so let's go to the this swing High because this is this is more of a trend right here this is a ring we're trading in a box right here so this is the actual trend so we go up here we make a new swing low still trade in in the box but what I would be looking for and what would keep me safe you can take trades off of 236 I do not um like I said I use the two three six as if I'm already in a trade and it retraces to a 236. I don't think that a 236 reversal is strong enough for me to hop in a trade but you still can use it for Confluence right so um for instance right here we had a three two so I can say okay we have a three two two reversal up to the upside then I could possibly get into this trade that didn't happen so now I'm just looking for an actionable signal to go back up to the upside I have to be it has to prove to me that it wants to go back up to the upside this is right here is trading in a Range so it's very hard to tell if it wants to go back up to the upside okay um so this something like this I would just stay away from it's not enough it's not a strong enough like thesis that it wants to go back up to the upside because what can happen is it could possibly just trade like this it can just stay in this little range for a little bit and then eventually break out so I would avoid a 236 entry by all means um but if if it's giving you a strong candle like let's say it gives you a a very strong hammer or something like that you can just treat it like a straight actionable signal to possibly go up but from my experience I've noticed when it's Alpha 236 is you it's usually chopping around it's usually stuck in this range between the high and the low and it's trading in between the zero and the two three six so that is not a high probability for me and a lot of FIB Traders don't even have a 236 on their chart but I wanted to show it to you so I kept it on um so now I want to look for the next point of entry we didn't get anything there so let's see if we get something right here from this swing low turn my magnet back on from this swing low to this swing High because now we have a clear Trend we have an obvious trend this is an uptrend it's not it's none of this this little action right here we have a clear uptrend so I go from this swing low to this swing High and as you can see we started selling off people were taking profit it broke through the 382 no signs of a reversal but no no signs a reversal back up to the upside we broke through the 0.5 it it touched the 0.5 to a T as you can see but it broke below the 0.5 and then it went to go test the 618. so after it tested the 618 this will give you a entry point this is a strat actionable signal a three two two back up to the upside a kind of it's like a hammer a hammer off of a 618 is a beautiful setup if you see a hammer off of 618 you should be like you should you should be thinking this is a high probability trade especially if you can break you can um pair it with confluences like maybe it's all it's a hammer off of 618 and an uptrend maybe it's a very strong support level maybe it's a it's a big Supply Zone that it's hammering off of when you can compare when you can um pair a hammer and a 618 it's usually a very high probability trade so we have this retracement to the 618 we would be looking for calls I would have a bias for calls and boom this will be our first Target right here we get it we don't we get it in two weeks that would be our first Target our overall Target would be right here now when you're using fibs for like swinging for instance right day trading with short contracts it can get really like with short dated expiration contracts it can get very sticky if you put your stop loss below a 618 you want to put your stop loss if you entered off a 618 you want to put your you want to put your stop loss somewhere below the 618. now we do trade options and that could be a lot of your contract now if you were swinging and you took let's say you took an entry up here and you were looking for it to not go below here um depending on your risk tolerance and the the time you have on your contract if you have a lot of time and you can you know stomach this then it may be beneficial to put your stop loss below the 618. the reason you want to put it below the 618 because your whole thesis was that we were getting a 618 bounce to the upside so if it goes below the 618 then it kind of invalidates your thesis the next place it could go is the 786 but you don't want to be part of that you don't want to be part of that price action that's going against you in hopes that it reverses at the 786 because it could just continue to fall so you will be buying a you will be holding on to a fallen knife pretty much and that's not what you want um but if it comes back down to a 618 it testes it again and then it gives you like another hammer or another actionable signal to go to the upside then that's fine so here we had the 618 bounce we got our Strat PT right here it did not reach our overall Target our overall Target is this swing high so if we started putting in a swing if our next swing high was lower than this this previous swing high this is the first sign of a reversal we just put in a lower high so for it to be confirmed we also have to take out this previous low right so for this to be confirmed we have to take out this previous load there's no question about it we have to take it out for it to be a true reversal to the downside so if you were in this trade let's say you took your profit at your uh Strat PT right here right and you're just holding on to Runners and now you want to see how long can you hold your Runners for how long can your Runners make you profitable if your first indication is that hey we just put in a lower high that is a signal that we may be going to the downside so now what I'm looking for is I'm looking for a I'm looking for it to not take out this previous low if it does that is an indication that it's going against me now if it comes back down to these levels and it puts in a higher low that is an indication that it's going back up to the upside so the reversal attempt failed it wasn't successful it didn't take out this previous low so it failed and it's going back into our favor so that's one way you can hold on to your runners if you have the patience to do it um if you if if it's a stress-free trade you already made your money and you just want your Runners to make more money for you that's one way of of looking at it like hey I'm just gonna see what happens once it reaches these next key levels how does it react to these next key levels and does it take out a previous low confirming a reversal if it's confirming a reversal then I'll cut my Runners um but if it doesn't even take out the previous low and it's setting back up to go to the upside I'll hold on to this trade does that make sense to everybody do you use FIB extensions for targets or just magnitude so FIB extensions and fit retracements are two different things um I really didn't want to teach you FIB extensions because I don't use them I know how to use them but I'm really like I don't really don't use them I kind of just use swing highs and swing lows and um like pretty much liquidity but I use them for retracements to see where price could possibly reverse back up into my favor to answer your question but the FIB extension is a different tool so I'm going to go to it one more time you want to you want it to say fib retracement right here the FIB extension that's that's pretty much you want that's that's going to show you where price is supposed to be going so you will go from the low to the high to the retracement and that shows you where price could possibly reach to that's how you use the that's how I use the extension tool but I don't use it though um so so um another way you can use fibs you can use fibs on any time frame you can use them on a lower time frame you can go down to an hour so when you see spy is trending right let's say you see spies having a trend day now let's just pick a let's just pick a spot so let's say right here we gap down and I'm on an hourly time frame let's say we gap down and then we started selling off and I would want to see where could spy possibly touch before continuing to sell off I will go from this swing High to this swing low and we have a two three six so for me personally um I would have to pair this with like a support or a resistance I wouldn't take a trade off of 236 solely because of a two three six so if I looked over here I see that we have a support which turned into a resistance that's a key area for it to sell off um I wouldn't necessarily be looking for a two three six but like I said if the setup is sweet and you have enough confluences to build on a 236 you know it it's okay to take it but that is not something I look for though um but if I was already in this trade let's say I got into puts up here or this was a swing over overnight and I was in puts right here and it was selling off and it was going into my favor and then I seen it retrace back up to a 236. I know I'm good like already it only retraced to a two three six it's not this is a strong Trend to the downside I'm good nothing to worry about so the 236 is very good for helping you stay in place once you're already in it if you've seen if you were in this trade and you see red red red and then you start seeing green you might start getting worried like oh it might it might go against me now it might go against me when you see it at that two three six and it reverses off of that while you're already in the trade that just kind of helps and like that gives you better insurance that it's going it's going to continue to go in your favor okay so with swing Trading you see this a lot in swing Trading you ever see and let me find like a like a like a good candle okay let's say like this candle right here or let's say let's say this one right here you ever see in swing trading where you have like your call entry is let's say your call entry is right here right let's just say we were taking this as a call entry this isn't an actionable signal but let's just say that this was our call entry right there you ever see it trigger two up for the next candle and then it kind of just comes back down and then it takes off so it triggers two up it comes back down it may stop you out if you have a tight stop just for it to continue to go back up on a smaller time frame it could just be making a trend tto retracement so that is a good place where if you hop down to a smaller time frame let's cut this out if we hop down to a smaller time frame let's say a daily so let's watch how this triggers let's see how it triggers so as of right now we have this two down Hammer let's see how we trigger this so we got a two up right there right so when you're swinging that's why it's important to get starter positions because we're Priceless likely to do is to to trigger two up come back retest the call entry before going up or it can come back down and retest a fib level before going back up so if you're in a swing and let's say you get a starter position like a low amount of contracts that's what a starter position is you want to see price retrace first before you start adding in so the fibs can help you with that so this will be our swing low let's see where price goes before it starts retracing and then that can give us a better entry for the overall move so let's see where it goes so right here as of right now we have a retracement a slight retracement um this candle kind of tells me that it won't it it may not come all the way down but let's see what happens so you could have put your Fib from let's do this swing low to here it's a 236 bounce which indicates it's a very strong Trend it's not really a retracement um the first sign that I've seen that it didn't want to keep coming down is it went too down but it failed like as soon as it went two down they bought it right back up so that indicated that this was going to be a strong Trend to the upside but as you see here this is giving us selling pressure so you might want to put your FIB up here and see if it comes back and retraces so let's see what happens nope it doesn't you can keep walking it up so now we got our two down we have a fail two down we want to see if this goes in force the next day to retrace to one of our key entry points let's see what happens so it's starting to retrace and right here it blew through all of the entry points all of the key levels so it blew through our 382 it blew through our 0.5 it blew through our 618 then it closed below our 786 which is a last line of defense so that's why you don't want to buy it just because it touched that level just because it gets to a 0.5 level doesn't mean just buy it just because it gets to a 618 level doesn't mean just buy it or even if it gets to a 786 it doesn't mean just buy it because it's at a cheaper price you may be catching a falling knife so you want to see signs of a reversal back into Trend if it's not giving that to you if it's just continuous selling off you don't want to be in that trade but the importances of having these fibs up is you can get it it pretty much keeps you safe like let's see what happens at this level okay it went through that level let's see what happens at this level it went through that level okay let's see what happens at the 618 which is where I really want to buy oh it blew through the 786 I mean the 618 also that's not a trade I want to be in for for for calls for longing something so the fibs help you stay patient also it's pretty much like a checklist like how do you react here how do you react to your how did you react here how did you react in this zone right here how did you react in that area that's a high probability trade if you had a reversal candle or reversal pattern in the zone of Interest does that make sense to everybody and this is my that makes perfect sense but my question is why you put at the bottom of that three shooter how could we didn't put it at the bottom of that first two shooter or even the the last this last two doji why didn't I put it which you talking about this this one I'm not sorry I'm sorry Hammer Hammer my bad so you put at that three Hammer right you started up from that three hammer any particular reason why you didn't start from this two Hammer before the three Hammer I could have put it here only reason I I kind of put it there because this is like sideways action it's not your turn but no I could have put it here too because this is a swing low so most you are most certainly correct to put it there okay put it there and keep walking it up um you can keep walking it up okay got you so yes that's just why I chose to do it I chose to do it there because it was a bigger pivot point and it wasn't a lot of like we had a three two two down which this is a this is a REV Strat to the downside but if so I just I put it here because it was a bigger pivot move okay cool cool yep so fibs are very relative too um it is really based on your perspective um your time like whatever time frame you're looking at that on so you may say like hey spy is at a 618 level okay a 618 on what on The Daily on the weekly on the 15 minute on hourly on the month like what is it on 618 at um you may interpret swing lows and swing highs differently than the next person so it may not always be perfect for you know as the next person but that's why I like to focus on zones because then we have like a pretty good idea of where the area of interest is the reason I have these gold like this because this is the golden Zone this is where price is likely to reverse and like I said you can go in here and you can change your settings you can make a background if you want you can change the color whatever you want to do to make it fit your needs you can um customize it to best fit you okay so let's look at this downfall right here and let's look at it on a weekly time frame I like to look at downtrends because I know downtrends kind of trip people up when they when they see them so here we had a downtrend so this is a way you can kind of be patient and have your checklist right so if I want to see this overall move where prices likely to reverse from first I'm gonna look at the first leg and see where see what areas did we hit before selling off we hit a 0.618 right here hit the 0.618 sold off we did not reach our Target we traded in a range right here then we came back and we tested the 618 a second time we tested it one time right here we tested this second time and then we we tested it a third time with a lot of selling momentum that is a high probability trade because we tested it three times we have a lot of selling pressure right here um that's a high probability so on a smaller time frame you can find a entry and as you can see we continued to sell off so let's say I wanted to capture this entire move and I'm going to bring the other fibs back in a second so we would go from this swing high this is the highest high to the most lowest low right here and I'm going to bring the other one up okay so if we thought that we were going to continue a downtrend right we thought that we're going to continue a downturn this will be our checklist let's see how it reacts to a 0.382 okay you blew through that let's see how it reacts to 8.5 you blew through that too so now we'll be looking for a 618 reversal back to the downside to take out this low it blew through that also right so just by using that little checklist that will keep you from going in short right if you're seeing bullish momentum in the opposite direction that you thinking the trend is going in that should keep you out of the trade because there's no indication that you should be shorting this it's blowing through FIB levels you're getting continuous two ups there's no reason to think short in this and you broke a trend line so that's one way that fibs can help you stay out of Trades every trade isn't a good trade um you may be thinking that it's going to keep continuing to put in higher highs and higher lows and it doesn't reach there the fibs kind of just give you like a walk down checklist of what you should be looking for um if it starts reversingly let me check the chat what is the Pivot Point indicator um the Pivot Point indicator I have it on here the Pivot Point indicator that pretty much shows where institutions are buying and selling those shows like very um algorithmic pivot Points AKA uh support and resistance that's all it is that shows where price is likely to reverse where they may be buying or where they may be selling that's all pivot Points are um these are essentially pivot Points also but the actual Pivot Point indicator are it's like calculated in um where they may possibly buy and sell these levels right here and as you can see they pretty much get respected oh let me check the chat um can you do a few trade examples of you talking out your confluences with fibs yes I can ICT loves the extension yeah a lot of people do love the extension um the extension is a good tool to see where price could possibly go but even in the extension the first Target is the previous if an uptrend is a is a swing high it's the zero so that's the first price Target um the the extension tool just gives you other possible price targets for the long run um so somebody said they wanted to see Amazon let's look at Amazon yes sir either that or apple you know we're just looking at Apple yeah either something I would do on Amazon before I got in a call and I was just uh just kind of analyzing just going over and stuff like that so okay so first let's see where Amazon is with this entire move now when you start looking at um um the higher time frames the retracement is going to be um smaller like you're not you don't you're not always going to see like a 618 retracement on a monthly time frame you can but that was a very aggressive sell-off um when you had a strong Trend like this it's most times going to be like at a two a two three six or something like that so let's see where this is at this is the first low that started this move to the highest high so right here you can see remember I said we came to that two three six and we just chopped in that range that's kind of why I don't really care for the 236 it's usually chop whenever you whenever it comes to two three six most times it's chopped you couldn't get you can catch a solid reverse off of that level but most times it's chop around that level so right here we broke through the 236 it looked like we tried to come down and test the 386. I'm in a three or two right here so we also have a support level right here right and if we look back in time we can see this was resistance here resistance here resistance here um this was a respected level right here right even back here in 2020 this was a very respected level so we have that going for us this is a range as of right now so this it it's a big range but this is a like this is a box so it's just trading from the low of the range to the higher the range um a lot of indecision going on in here now if we start making like if we start getting something like this like we have this swing high right here we had this swing low and then we break through that that level right there with a a clear churn this can be a high probability trade but if we just go two up and then we come up here and then we go two down and we come back down here that's not really telling me too much um so Amazon we kind of have to see how it plays out let me look at the daily but since that range is a pretty that's because that's like a 20 range yeah that wouldn't best I feel like that still kind of yields some kind of good return maybe for sure for sure um I'm just looking at it from a longer time frame um standpoint you it's people who literally trade ranges they buy it at the bottom of range and they sell it at the top like there are people who literally just trade ranges even right here within the range you had a trend you had a trend still some sideways action like I just don't like the price action pretty much but you still have place a point of entry so right here you had to swing High to this swing low um you could you could see where price could possibly reject to we traded in a Range again right here right here we came up to a 618 we sold off but it didn't take out that previous low you see what I mean like this is a nice price action right right right right it's not something you really want to be caught in you want like the highest probability trades unless you just trade in like support and resistance you know go for it but um how I use fibs or whatever I like to see clear Direction on exactly where um it could possibly go makes sense so for right here right that was a trend on The Daily that was the swing low it's set up for the reversal with the green two then we had a 2-2 reversal to the upside so now what I would be looking for let me take these away now what I would be looking for is I would be looking for possible ttos off of this level off of this level or off of this level to come back down break the range once again and then flush yeah I guess I'm the type of person that would try to buy into those ranges and then short it after to get the rejection kind of like buying into Supply and selling to demand yeah you can do that I mean it's a range so like ranges are very profitable if you know what you're doing but it's not um the thing about like it has no clear Direction it's stuck in a zone now if you notice that like hey this thing is stuck from 126 to 145 every time it gets to 145 I mean every time it gets to 126 they buy it up all the way up to 145. you can be highly profitable doing that now at some point you got to know that that's not gonna work like it's going to break out to either which way at some point of time but while you take of that time yeah you could be highly profitable doing that it's just hard to place fibs doing that because you don't have a clear Direction you see right guys okay no problem so yeah just watch Amazon see what it does see how it reacts it's at the bottom of the range right now um it broke through that level so it could be possibly setting up for the the downside maybe it comes up here test that and then Falls um so watch Amazon this is also a yeah that would be a supply zone so um I would just say keep a watch on Amazon got you and I'm sorry you look at CCL yes Carnival okay so I remember Carnival hit that like 20 Level which it was exhausted up here they didn't actually didn't even hit it so first let me see where we are within the entire move as of right now because we're clearly in a downturn so it's at the 236 and as you can see it's it's ranging right now still like for this price action is ranging um it may continue to do that until it decides if it wants to be bought back up or if it wants to continue to sell off let me look at it on a weekly time frame and this is why I say his perspective you go to a higher time frame and you look at let's say you look at the leg on this higher time frame like from here to here or this entire move if you look at the the full perspective then we're approaching a 0.5 we may be approaching a 618 which is a very high resistance turn support if it comes back down here so before the 618 level was a very strong resistance as you can see we bust through it we may be coming back down to test it again to get bought back up so it's important to do analysis on different time frames on look at look at what it's doing overall what is the overall move you may be looking at something on a daily but maybe it might just be a sell-off for a few days or a sell-off for a couple weeks but if you look at the entire move it may be telling you a different story um but let's look at how CCO excuse me has been performing as of right now so if we go from this swing High to this low right here this isn't a swing low yet because we would need a 2 up to validate this being a swing low this is one of those instances where you have to just keep walking it down until it gives you a retracement but as of right now um last week we opened down here they tried to buy it up it got into close to this 382 Zone and they immediately sold it off it's telling me that it's still bearish it completed this gap or it almost completed this Gap right here um so they may be trying to if it doesn't come back and test this resistance right here they may be trying to bring it back down to 11 50 around this area to test 11.50 possibly buy it back up but we will have to see how it reacts at that level but I am very bearish on CCO and I have been for a majority of the year thank you no problem yeah you can see how I reacted at the 618 even on the opposite side it just served as a support finally broke through and it flushed any other tickers you guys want me to look at first of all this everybody is everybody on page is everybody understand what I've been saying so far because you're going to get homework tonight so I want to make sure everybody understands how to draw FIB in an uptrend how to draw a fib and a downtrend how to draw a fib from each leg and how to draw a fit from the entire move does everybody understand those four Concepts okay um somebody said QQQ but also too look at that looking at these examples is starting to make me understand why we buy time because we don't know when it's going to happen and which camera is going to happen on but it is it it's going to happen brother you hit it right on the head and what I tell people like what I tell people a lot is the move that you want if you if you if you're doing your analysis right the move that you want it is likely to happen it's very likely to happen it's just not likely to happen when you want it to happen and we have to realize that the institutions and and the people with the with a lot of money their job is to take our money their job is to stop us out of our positions and take our positions the other way so knowing that we have to expect fake outs we have to expect manipulation fibs kind of just help you gauge where that manipulation may have happened or if if you're looking at a support level that that could be a 0.5 but they really want to take it to a 0.618 before going back up that is a form of manipulation you know what I mean so it kind of just gives you that best price it lets the dust settle before you get in your position that's what I love about fibs um so let's look at this this price action for um right here first and see what we got so from this low to this high as you can see we broke through the 0.5 through 382 we broke through the 0.5 we broke through the 618 and then it got as low it opened here it started selling off it got as low as the 786 which is the last line of defense if it breaks through this it's most likely going to take out the the previous low it got to the 786 and it bounced off of it to a t giving you a three two two reversal to the upside then you would Target the previous high right here it even went a little further giving you higher highs and then giving you a higher low um so if you caught that wave cool you made money let's focus on the next wave let's go from this low to this high so now what I would be looking for is um this move right here so this is all hindsight everything on the right is hindsight we got this move we broke through the 382 we came to the 0.5 we rejected it or we bounced off of it I will be looking for a 2-2 reversal to the upside my target would be this right here this high right here it did not completely get to it if you took profit along the way you were profitable but it didn't touch it to a t right so then we start putting a lower high so since we did not take out this which is a requirement I know this is the first sign of a reversal right we just put in a lower high that is the first sign of reversal this this was the first sign right here but right here this low is still lower than that one that's the first sign of a reversal for this reversal to be um confirmed we have to take out this low and that's what we did so now I know for sure we are in a downturn there's no question about it it meets the guidelines for a downtrend so now what I would be doing is once it took out this low right here I would be looking for possible areas where it could retrace to to get in um puts the continue to the downside so now it's at the 382 it rejected through 382 you could be looking for a 2-2 reversal back to the downside or you could be looking for it to go to the 0.5 it maybe it goes two up again and or it goes another two up to the 618 you want to be start looking at these areas for possible um retracement areas to go back into your favor back to the downside um QQQ so QQQ for this time frame for this price action right here is exhausted to the downside but you can also see that if we continue if we break below this level right here which has been serving as a very strong support if we continue back to the downside QQQ is going to want to sell off it's going to sell off and it's going to take all of these stops right here each candle at the bottom is going to continue to sell off so QQQ may be bullish for you know a couple days next week um it may you know maybe we may have some green days with like whatever the case may be but when when you start pulling out the fibs it kind of it kind of makes you look at things sideways like nah I don't trust that like you can't fool me I've seen this before just because you went two two up does not mean that we're about to have a green wheat you could just be buying it up to sell it back off so fibs kind of make you look at things sideways for sure um let's look at it on a weekly time frame so even on the weekly we are also putting in lower highs and this was our lower low so we may have a green week um um we may have a green week we already put in our lower low um it may come up here it may fail it may not reach its price Target but then it might just do like this action right here boom boom boom boom it may come up here before coming back down and it can't lose this level right here this is a key level it cannot lose this level so that's something to look out for with QQQ you may have some bullish days but um don't be fooled anymore any more anything else you guys want me to look at go ahead and look at Apple too we might have our drawings on Apple still yeah yeah yeah yeah yeah okay yeah we do um no you're good you're good um I'm gonna just see very soon oh boy he got coin somebody said coin coin yeah look at Point next so Apple was traded in this range right here so this was the first drop for Apple right here this this this extreme move right here that extreme sell-off so if you were looking for it to continue to sell off you will want to see where would price get bought up to before continuing to sell off um they took it up to the the 618 to the 786 this Zone area right here it could not it could not get past it and then they gave you a reversal back to the downside um it started chopping around in this area right here and now what Applewood is doing is it's it broke below the zone I mean this range right here now it can either come back down retest this range so we were just trading up and down in this range right we're trading up and down if it breaks below it can either come back retest the range before dropping or which I am going to get into at some point in time I know somebody mentioned ICT one of my favorite Concepts is the power of three sometimes they chop you around they consolidate they fake you out to make you think go short and then they take it up so we have to watch and see it just broke through that range it just lost this key level right here we have to see how Apple um does next week if it's still looking bearish or bullish um we have to keep an eye on it I was I was bearish on Apple I said that a couple weeks ago I was bearish on Apple um if we look at the monthly time frame let's see where we are so a set of three two let's see if it wants to come back down and break below this 382 and start testing these key levels the 160 the 150 and these uh the 151 the 160 and the 151 let's see if it breaks below this 382. that's looking at it on a larger time frame let's see how it reacts to these levels as it approaches them coin we had some weird times man I tell you so looking at corn coin from a weekly the first thing I notice is this range that we were trading in I love to draw ranges I love the draw train ranges so it doesn't make me think that it's a churn even you can see it gave us like swing points but it's still trading sideways so I love drawing out the range so let's see this started our uptrend that was our swing high so I went from this low right here to this swing high and we are currently at a 618. so we came to the 608 we tested it once twice um really three times on a smaller time frame it tested it again it went up it made a lower low right so what we need what we would need it to do what we would look for is coin to have this bounce off the 618. we wanted to take out this high in this little range right here we wanted to take out this high and continue up but we are at a 618 area um which could be a good point of Interest and let's see on a smaller time frame we tested it this day this day this day we tried to run up we sold off run up this is a range right here this is trading in the range um we broke below the range a little bit this could be the start of a run-up how are we doing on the monthly yeah this could be the start of a 2-2 ref to the upside it could very well be the start the three the quarter they sold it they sold it off terribly um we have to see how it reacts on the quarterly but coin is in a big um demand zone so this is this if you buy it anywhere in this area it is a cheap price pretty much so if coin model holds and people believe in it this will be a great price to buy coin so um I think coin has some potential upside without looking at the fundamentals just technically it has a from the technical aspect it has some good upside to it because you're buying it at a great price if coin ever decides to get back up to any of this range even if it decides to get back up here you're buying it at a great price um but yeah any questions on fibs I know that was a lot um I hope I didn't lose anybody anywhere um do we have any questions um so where would you I guess start what time frame would you start to put your fives the week or the month or the quarter or just like I said it's just it just depends on what type of Trader I will be right yeah um yeah it depends on what you're looking for so usually when I'm looking at charts this is how I'm looking at charts I'm looking at oh these are my day trading time frames um I'm usually looking at charts like this if I'm if I'm going through my list right I have my day I have my week I have my month and then I'll usually have my quarter up so I'm looking at charts like this already when you start using fibs you like your eye will kind of get trained to where you think it is so like you can look at a retracement right and you'll be like Ah that's that's probably a 0.5 or that's a six one eight that's a 382 like your eyes will pretty much get trained to it so knowing that like if this caught my eye right here like this this caught my attention I would look on it I will look at it on uh the weekly first and see where we at in relation to everything oh wow we're at a 618. okay cool let me go look at what the daily is doing or vice versa if I'm already looking at a day let me see what the weekly is doing um and then what I could do so now I know that that this is the FIB for my overall trend I know that right here is a downtrend so now I want to see what what could I look for in this little Trend right here so I'll go from this high to this low what what areas could keep this from pushing up so it's at a 0.5 from this little small downtrend on a daily could it go to the 618 or would it continue off the 0.5 and validate my thesis that it's going to take out this low right so that's how I just stack two days on each other the first one I went from the weekly or two time frames the first one I went from the weekly to see okay we possibly have bullish momentum on the weekly now let's see how we perform it on a daily what can stop that bullish momentum on the weekly let's see what's going on on the daily oh we're at a 0.5 which is a strong resistance level can it break through that and let's see if that validates my weekly thesis so I have two on here you you would have to like pretty much be able to decipher which one is which but for me I know um in an uptrend my numbers are going to be my two three sixes at the bottom my 382 my 0.5 and then and if I'm going from a downtrend my all of those numbers will be at the top so that's how I can look at it quickly until right if all those lines like stress people out you know you can color code things you can you know make it easy for you it doesn't really bother me I'm used to looking at it but you know make things easy for yourself okay perfect well if we don't have any more questions I'm gonna give you one more chance I know we went very long today um but if we don't have any more questions then we can wrap this up so last chance any more questions okay well that concludes this lesson I appreciate you guys for coming out with me today I'm going to record I mean I'm going to upload this recording if there was anything that you didn't understand or um if you have questions later please feel free to um DM me you can also DM rose rose is really good with fips also so um DM DM one of us and we will definitely get you together um I'm going to assign you guys homework for the weekend and also for next week so they will deal with fibs that will allow me to see where you guys are having mistakes or if you got if you really understand it so I'm gonna give you guys some homework but once again thank you for coming out and please DM me if you have any other questions have a good weekend y'all