in this free video course you will learn everything you need to know about trading with Fibonacci whether you are trading stocks crypto Forex or any other Market this video is designed to take you from a Fibonacci beginner to a Fibonacci expert hello everyone and welcome to this Fibonacci trading course let's begin here by taking a look at what you can expect to learn in this video the very first thing we're going to take a look at is of course what is Fibonacci and we will of course take a look at what is Fibonacci in trading but we will also very briefly take a look at Fibonacci in nature because the Fibonacci pattern is not only something that appears in trading and on our price charts it actually appears in many natural phenomena as well and that is super fascinating in the next chapter we're going to dive deep into how the Fibonacci tool works so for example what does all of these numbers actually mean mean and where do the numbers even come from we will also take a look at why these numbers are important and how they can improve our trading in the next chapter chapter three we will take a look at how to use Fibonacci retracement the Fibonacci retracement is one of the most common methods to use the Fibonacci and it can help us find great buy signals in the market but we will also of course take a look at how to use Fibonacci extension Fibonacci extension is more about finding price targets while Fibonacci retracement is more about finding entries and we will of course cover both of these step by step in chapter 5 we will cover three specific Fibonacci Concepts that you need to know about we will take look at the golden Zone the golden pocket and also something called 0.382 to 0.5 to masterer Fibonacci these are three things you need to know about but don't worry we will go over all of these three step by step and last but definitely not least we will take a look at some Advanced Fibonacci settings and some Advanced Fibonacci trading strategies so before you watch chapter six I highly recommend that you watch all of the previous chapters I have built this course in a sort of stepbystep manner so you will understand every chapter better by watching the previous chapters but all right so let's begin by asking the very important question what is Fibonacci well the Fibonacci pattern is a sequence of numbers that can be found everywhere and the pattern was introduced to the Western World by Leonardo Fibonacci and right here you can see an image of Fibonacci himself but now what is this sequence of numbers and why is it so important well if you focus here on the image to the left you will soon realize that the sequence is actually pretty simple I hope you can see but the first two numbers here are one and one and if we add these numbers together we will get two and now if we add one and two together we will get three to get the next fibon number we add the two previous numbers so we add two and three to get five what happens if we add three and five we get eight and by now you can hopefully see the pattern to get the next number we add five and 8 and we get 13 and this pattern goes on and on so if we add 8 and 13 we will get 21 and so on and so on and here's where it gets interesting this pattern can be found everywhere so for example if you take a look at the first image right here which is some kind of shell you can see that it's super similar to the Fibonacci pattern and it turns out that the structure of the shell is actually built upon the Fibonacci sequence but this pattern can also be found in you know galaxies we find the pattern in hurricanes in you know this is some kind of plant and this thing as well which I you know don't know the English name for so the Fibonacci pattern is found in nature but it's also found in the charts so now let's dive a little bit deeper into Fibonacci in trading so now then what is Fibonacci in trading well when it comes to trading we are talking about something called Fibonacci ratios and the Fibonacci ratios are found in all financial markets so it doesn't matter if you trade crypto Forex or whatever other Financial Market you can find these Fibonacci ratios everywhere but what do I mean when I talk about Fibonacci ratios well if you are already a little bit familiar with Fibonacci this number right here might sound familiar 0.618 and this number right here might also sound familiar 0.382 these are two very important Fibonacci ratios and by the end of this video you will know why they are so important but for now let's take a look at where does these numbers even come from well to get 0.618 what you do is that you take any Fibonacci number and you also take the previous Fibonacci number then you divide the smaller number with the larger number and you will get this ratio right here and to get the 0.382 you do the exact same thing but you go two steps down and take this number divided by the larger Fibonacci number and you will get 0.382 and these ratios will become more and more accurate the larger the Fibonacci number you choose and now let's focus a little bit on the image here to the left you can for example see that we have this 0.382 number right here and we have the 0.618 number right here and you can see that in this particular case the price went up here the price came down and it actually reversed just in between the 0.382 to 0.618 and then the price continued here towards the upside and this right here is very important and something we will talk about later on in this course okay so now we're ready to take a look at how the Fibonacci tool works and to show you guys the Fibonacci tool I will be using trading view which in my opinion is the best charting program it's great both for beginners and for more advanced Traders so if you guys for some reason haven't signed up to trading view yet I will make sure to leave a link to trading view both in the pinned comment and the description you can use the link to sign up for free you can also try trading view premium for free for 30 days if you feel like it and if you later on decide to buy a plan you will actually get a small bonus but now let's open up trading View and take a look at how the Fibonacci tool works all right so now we are in trading View and we are looking here at Bitcoin on a daily time frame so here on the chart every Candlestick represents one day um and to open up the Fibonacci tool what you want to do here is that you want to go up to the upper left corner you want to press this button right here where it says Gan and Fibonacci tools and you want to open up the tool right here which is called FIB retracement this right here is the most common tool H later on in this video we will also take a look at the trend-based Fibonacci extension this one is also very important so let's St this one for now we also actually have some other Fibonacci tools right here as well but these two at the top are the most important ones and especially the Fibonacci retracement so now let's open up the Fibonacci retracement right here and for now let's actually just go to a blank spot here on the chart and to use your Fibonacci tool you want to make sure that you click on this button right here so that it's blue then you want to press on one spot on the chart and you want to drag the tool and press on another spot on the chart and now as you can see multiple lines here multiple levels and zones has appeared and to make this tool a little bit more clear I'm actually going to change a few settings so I'm going to go up here to the settings tab and I'm just going to increase the font size here by a bit so you guys can see the numbers more clearly here because the very first thing we need to understand is of course what does these numbers right here on the left so we have a 0 0236 0.382 0.5 and so on and so on what does these numbers actually mean well these numbers right here are basically percentages so for example 0.236 simply means 23.6% and you may of course Wonder 23.6% of what well remember we dragg the tool from this point all the way up to this point and 23.6% basically means that from this point down to this point this length right here is 23.6% of this length right here and the next number is 0.382 by the way this number is more important than the 0.236 and I will talk about that soon but 0.382 basically means 38.2% and that means that this length right here is 38.2% of this whole length right here and this number right here 0.5 is actually special because this is not a Fibonacci number but this one is still a standard number here on the Fibonacci tool and the 0.5 number basically comes from simple geometry uh 0.5 simply means 50% and that is because this move right here down to this point is 50% of the whole move and now you probably get the point the z. 618 is also a very important number very important Fibonacci number and it means 61.8% because this move right here is 61.8% of this move right here and now you're probably get the point so we don't have to do all the numbers but yeah guys now you already know how the Fibonacci tool works so now when we know how the Fibonacci tool works we are ready to learn about Fibonacci retracement and to learn Fibonacci retracement we first of all of course you need to know what a retracement is in the first place and as you guys can see right here we have a Candlestick chart H right now it looks a little bit confusing but don't worry it will be very clear soon and now to understand what a true retracement is we first need to know about something called swing highs and swing lows and learning how to identify Trends and swing highs and swing lows is something called Market structure and I have actually already made a full one and a half hour long video course here on YouTube where you will learn everything you need to know about Market structure and if you do have the time I actually highly recommend that you watch that video after you have seen this one but in super simple terms the swing highs and swing lows are basically the most clear highs and lows in a trend so for example right here you can hopefully clearly see that we are in an uptrend and this right here is a swing high this right here is a swing High we also have a swing low right here we have a swing low right here and we have a swing low right here but as I said it takes some time and practice to be able to identify this uh points correctly so that's why I really do recommend that you watch the market structure course after this video but a retracement is basically the move here which goes in the opposite direction of the trend so the retracements here are this move right here and this move right here and we Ed the Fibonacci retracement to predict how low the price will go before the next swing move and here you can see something super interesting you see we had the first impulsive move up the price actually came down to this area right here uh the 0.382 to 0.5 and this is by the way one of my personal favorite retracement areas and I will talk about why uh later on in this video but you can see that the price came down to this area and then we saw the next strong move towards the upside once again the price came down right it came down to this area right right here before we saw the next move here towards the upside so the Fibonacci retracement is all about finding areas on the chart where the price is likely to reverse and continue the trend we use the Fibonacci retracement to find entry levels in Trends so now we need to talk about something super important and something that I see you know especially beginner Traders struggle with and that is of course how do we draw our Fibonacci ret trade Ms correctly so now we're back here inside trading View and we are once again looking here at Bitcoin and to draw your Fibonacci levels remember you want to go up here and make sure that you shoose the Fibonacci retracement right here and to draw your Fibonacci retracement in an uptrend the first thing you need to identify is that you need to find a swing low and a swing high so if we take a look at this chart right here we can see that we have a swing low all the way down here and we have a swing High all the way up here and here you actually have two different methods you can use to draw your Fibonacci and the most important here it doesn't really matter which method you choose the most important part here is that you are consistent so the first way here is to start your Fibonacci from the lowest Weck the lowest Candlestick week of the swing low and you drag your Fibonacci up here to the the highest point of the Swing High the highest Wick and then you drag your Fibonacci here to the right so this right here is the first method the second method here is that you start your Fibonacci on the lowest candle close of the swing low and you drag your Fibonacci up here to the highest candle close of the Swing high and then you drag your Fibonacci here to the right and as you can see in this case the price went up the price came down here to our Fibonacci area and then we exploded higher once again we can repeat this process so right here we have a swing low we have a swing High swing low swing high and so on and so on and let's use the second method so we drag from candle close to Candle close in this case you can once again see that the price came up here we came down to our 0.382 to 0.5 and then the price went higher once again we use our Fibonacci from swing low to swing High and as you guys can see once again the price came up here the price came down this time we actually came down to the 0.618 to 0.5 level and then the price saw a bounce here so as I said guys you can either use week to week or close to close it doesn't really matter too much but make sure that you are consistent with your usage so don't use Weck to Weck on one swing and then use close to close on another swing make sure that you are consistent ENT with your own analysis all right so now when we know about Fibonacci retracements we are ready to learn about Fibonacci extensions and Fibonacci extensions is at least for many peoples often harder to understand than Fibonacci retracements so make sure to really pay attention now for Fibonacci extensions what we are essentially looking out for here is Target levels so remember the Fibonacci retracement we're all about finding entry points and we can use our fib Fibonacci extensions to find Targets and to identify Fibonacci extensions correctly it's once again important to be able to identify swing highs and swing lows so for example if you guys take a look at this chart right here we had a swing low down here and right here we printed a swing high and one interesting thing you can already notice here is that the price seem to you know multiple times reverse at this level you can see here at the 0.786 the price pulled back then the price went up here to the one level the one level is a very important level and we will talk more about that later on in this video but you can see the price went up here to the one level and at this point we got multiple strong reactions then once again the price came down here and then it pushed all the way up here to the 1.618 and this 618 number is probably by now very familiar that number comes from the Fibonacci sequence we talked about earlier and this was the point the price reversed so now let's switch to attention and take a look at how do we draw up our Fibonacci extensions correctly what does the numbers mean and which levels here are the most important so now we're back here in trading View and to open up the Fibonacci extension tool um now you want to head up here once again to where it says Gan and Fibonacci tools you press on this button right here and now we want to choose the trend-based FIB extension so make sure that you choose this one right here and just as for the Fibonacci retracement the very first thing we need to do here is that we need to identify our swing highs and swing lows or in other words we need to identify an impulsive move so right here you can see that we have a swing low uh once again if you want to uh learn more about how to actually identify these points I highly recommend that you check out the market structure course I know I have been saying this multiple times but I really do uh recommend that video but here we have a swing low the price pushes up here to our swing High what we then need to do make sure that you have the trend-based Fibonacci shaked here and now we want to drag once again you can do this in two different methods you can either use from the Candlestick Wick to Candlestick Weck or we can uh use our points from the real body of the candle to the real body and we talked we have already been talking about this I will not go into detail but in this case we have to go from the swing low we press on the swing low first time then we press on the highest point of the Swing high but what we now need to do for for the extensions here is that we now need to go down here to the swing low we want this impulsive move so the first swing low to swing high if we copy this exact move and drag it from the low of the pullback we want this move to go all the way up here to the one level and the one level right here is a very common area for Traders to take profits when we measure the move like we did for example right here and right here this is something we called a measured move objective and this is a very common method to take targets when you use for example chart patterns and by the way guys if you want to learn more about chart patter pattern I do have a full 1our long course about that and I will make sure to leave a link to that course somewhere up in the corner in the eye but okay so now when we know how to draw our extensions we can actually draw this one a little bit more to the right here now let's take a look at what these numbers actually mean and so you guys can see more clearly here I'm just quickly going to change the settings make the numbers a bit larger and press okay so now just as for the retracement these numbers right here are basically percentage so for example this number right here where it says 0.786 means 78.6% this number right here means 61.8% this part right here is 50% and so on and so on but now these numbers actually tell us a slightly different thing compared to the retracement so because of basic geometry that this move is the same length as this move these numbers will basically tell us how close are we to the one number or in other words how close are we to the 100% measured move objective so for example 0.786 means that the price have gone up 78.6% to the measured move objective the one number here means that the price have gone up 100% or in other words we have reached the measured move objective but what about the higher numbers such as 1.618 well the same principle is true here the 1. 618 basically means that we have now surpassed the measured move objective by 61.8% and this level right here is yet another common level for Traders to take targets and many times we will see the price reverse at this level later on in this video we will talk about how you can change the settings here to choose the most significant Fibonacci extension numbers but for now understand in what the numbers actually mean is everything you need to know all right so now the time has finally come here to talk about the golden Zone and if you are a little bit familiar with Fibonacci you might have heard about the golden Zone but what is the golden Zone and why is it important well the golden zone is simply the Fibonacci area between 0.5 and 0.618 or at least this is the most common definition of the golden Zone and it's actually considered to be one of the best Fibonacci levels later on in this video I will talk about another Zone that you know at least for me personally is at least as good as the golden Zone but the golden zone is great and is important to know about but now you guys may be wondering here why is the Golden zone between 0.5 and 0.618 what is the reason behind these numbers well the 0.5 level is derived from basic geometry so for example if you imagine that this right here is our impulse move between the swing low and swing High the 0.5 level is basically 50% of this move and in many Trends the impulse moves and pullbacks will be about the same length and the implication of this is that many times the price will reverse around this 0.5 level but what about the 0.618 number well earlier in this course we have already been talking a bit about this but the 0.618 basically comes from this is just a fancy you know mathematical expression it's n minus1 / by n where N is a Fibonacci number the reason I wrote the mathematical expression here is just because I don't have a lot of space to write it with text but basically you can choose any Fibonacci number and you take the previous FIB Fibonacci number of of the number you chose here and then you divide it by the Fibonacci number you chose and this is where the 0.618 comes from and as we have been talking about this number is not only found in financial markets you can also find it in many natural phenomena as well so just to be clear here right here is zero here in the middle we have 0.5 and the lower line here is the 0.618 right here we have one and the golden zone is the area here in between 0 5 and 0.618 later on in this video I will show you guys exactly how you can change the settings of the Fibonacci tool to get this golden Zone but now let's switch attention once again here because I want to talk about what in my opinion probably is the most underrated Fibonacci Zone and that zone is the 0.382 to 0.5 and yes as I said 0.382 to 0.5 is in my opinion an underrated Fibonacci Zone and the reason I really like this zone is because this is a great reversal Zone especially in strong Trends so when you have a strong Trend like you for example see right here and with strong Trends I mean that we see strong impulsive moves here you can see we had a strong impulsive move we have yet another strong impulsive move when we have strong trends like this many times the price will actually not be able to pull back you know low lower than the 0.5 level many times the pullback here will be a bit more shallow and reversed slightly above the 0.5 level and most of the time slightly below the 0.382 so you can for example see in this image the price saw an impulsive move and where did the price reverse well we saw a reversal here at in between 0.32 to 0 0.5 once again we saw a strong impulsive move and the price pulled back and tested once again the 0.382 to 0.5 multiple multiple times and then this strong Trend continued here towards the upside and now you may of course once again wonder where are these numbers from well the 0.382 comes from the Fibonacci sequence this time we take any uh Fibonacci number and we take the two uh the number that is two step previous to that number and divide it with the number we choose that is basically nus 2 / 9 that is basically nus 2 / n uh and as I said where N is a Fibonacci number and 0.5 once again comes from basic geometry the last Zone I want to talk about here before we dive into the best Fibonacci settings um is the something called the golden pocket and for the two previous zones I showed you guys a chart but for this Zone I'm showing you guys the default Fibonacci settings and you may of course wonder why uh well that will be clear here very very soon but first of all let's take a look at what the golden pocket is uh the golden pocket is simply the Fibonacci Zone here between 0.618 to 0.65 um so this one is a little bit deeper compared to the golden zone or actually it's it's quite a lot deeper than the golden Zone and it's also a smaller zone so it's both deeper and smaller compared to the golden Zone and we know from earlier we 0.618 comes from but what about 0.65 what is so special about 0.65 is anything special about 0.65 for example if we take a look here at the default Fibonacci settings so the settings for Fibonacci tool you can see that we have no level here that is s .65 so in order to you know have the golden pocket you need to change the settings on your own uh but you might not want to do that because it seems like 0.65 is pretty much arbitrary and what do I mean here by arbitrary well it seems like 0.65 is pretty much a random number or in other words there's no mathematical or geometrical explanation behind the 0.65 number and and because this is the case we have no real reason to use the 0.65 uh perhaps it comes from some other Traders finding it successful to trade these numbers and that's definitely possible but because we have no real reason why we use 0.65 my recommendation here or what I'm doing is that I'm actually using this Zone with caution and personally to be honest not even using this zone so use the golden pocket with caution if you want to you you can of course always experiment perhaps the golden pocket works good for you and for the specific asset types you are trading but as always when you try strategies out you need to make sure that you have proper risk management and the best thing to do is to always practice with paper trading or practice with fake money before you actually dive in to the real market so now it's time to take a look at the best Fibonacci settings if you guys didn't know you can of course change the settings of the Fibonacci tool to potentially improve the effectiveness of the tool and as a result improve your win rates and in this chapter we will cover multiple different settings and some settings are more useful in some situations many times when it comes to indicators in general it's often that no size fits all so depending on what you are trading if you're trading long-term shortterm and your trading strategies and so on and so on some settings are better in some situations ations while other settings are better in other situations so these are the settings we're going to cover in this chapter so first of all we will take a look at the golden Zone setting and we have already been talking about the golden zone so if you haven't watched the chapter about Golden Zone yet I highly recommend that you do watch that one before we take a look at the settings here so you understand the golden Zone the next setting I want to take a look at is a setting to get perfect entries in strong long Trends so this setting is better when we are in a strong Trend compared to if we are in a more weak Trend or if you are in no Trend at all you shouldn't even use that setting but this one can be great in strong Trends the next setting I want to take a look at is the setting that I find is the best setting for beginners so here I will take a look at the best Fibonacci levels for beginners and last but not least I will take a look at a setting to find exact target levels all right so the first setting we're going to cover is the golden zone so to change the settings of your Fibonacci tool first of all we want to make sure that we have the tool shaked so you go to your G and Fibonacci tools and you want to press here on FIB retracement uh what you then want to do is that you want to drag out your Fibonacci tool you can do this anywhere on the chart and then we should see this window appearing right here and you want to go to the settings tab and press on settings next you want to go down here to where we have all of the FIB levels and you want to make sure that you have the first one zero here you want to have shaked but you actually want to unshake the 0.236 level you want to unshake the 0.382 uh you want to keep both the 0.5 and 0.618 uh you want to unshake the 0.786 and you we also since we're not going to use the FIB extensions we will also unshake all of these levels right here and so your settings should look something like this and now because this is the golden Zone I do want to do a few more settings here so the 0.5 I'm going to change here to gray uh or actually this one right here so we have it the same color as the rest of the indicator and as for the 0.618 what I do want to do here is that I want to change this one to yellow or golden something like this uh so we clearly have a golden Zone um now if you want to you can also change the background here perhaps you prefer to have a little bit stronger background or a little bit weaker um and if you want to you can of course customize this size and so on and so on uh but now we are basically ready here to press okay so what we now can do we can delete our FIB extension and now we will notice that the next time we use our Fibonacci tool so for example let's use it from this swing low right here so here we have a swing low and remember what we do we drag it from the swing low up here to the swing high in this case I use it from the real body to the real body and then we extend this level to the right here so as we can see in this case the price went up here the price came down to the golden Zone and then we reversed higher all right so the next setting I want to show you guys is actually one of my personal favorites and this one is especially good when we are seeing strong trends like for example right here so once again to change the settings we go up here to ganana Fibonacci tools we choose our Fibonacci retracement we drag it out here and then we go and click on the settings tab so once again you want to make sure that you have the zero right here shaked for this one we want to uncheck the 0.236 uh but we actually want to keep both the 0.382 and we want to keep the 0.5 uh for the rest of the bars here you actually want to check all of these ones or of course you want to keep make sure that you keep the one uh so these right here are the settings you want and what you also can do here is that you go up here to the 0.382 and you change this one to the same color as for zero and one and that's pretty much it for this setting uh of course as always you can change the background if you want to I like to keep it as it is uh so now we are ready to go down here here and press okay so now you may of course wonder why is this specific setting good when we are seeing strong Trends well when we are seeing strong trends like we are seeing right here you can see we have a swing low swing High uh another low high low high and when we are in these steep uptrends you will realize that many times the pullbacks here so the pullbacks are the moves against the direction of the trend the pullbacks will have a very hard time to go below the 0.5 level and remember the golden zone is below 0.5 most of the times the price will reverse actually slightly above 0.5 or many times more close to 0.382 and that is why I really like this setting especially when we're seeing lots of demand like we are for example on this chart uh so now let's use the Fibonacci tool with our new settings so once again we can either anchor from Wick to Wick or body to body uh in this example we can anchor from the wick of the Swing Low up here to the swing High H we can drag this one a little bit more to the right here and as you can see the price came down to this level we saw a strong this is actually something we call a bullish engulfing pattern which is a pattern that indicates a reversal here towards the upside so we saw a bullish engulfing pattern coming in here at our key Fibonacci Zone we can actually once again with drag from Wick all the way up to the highest Wick of the next swing High We drag it a bit to the left here and once again we can see that the price pulled back here we pull backed all the way to the 0.382 to 0.5 um we saw a strong candle right here and then the price once again shot up up to the upside let's see uh if we get another pullback you can see we anchor from Weck to the highest Wick right you can see the highest Wick all the way up here we drag the Fibonacci Zone a bit here to the right and you can see that once again the price came down right to this area with this green candle right here and then the price continued to push higher and now I just realized that I haven't shown you guys an example of a downtrend yet so let's take a look at how we can use these settings in a downtrend so the first thing we can notice here is that we are once again seeing a strong downtrend a very Steep and very clear downtrend so what we do here we once again have the same settings as before because we have a strong Trend and now we can use the other method so we anchor from the candle the highest point of the swing down here to the low you can see that we saw the impulsive move up the pullback came up to our area and then it continued down we can once again use our Fibonacci from the next swing High to swing low so we use it like this and once again you see we saw the move the pullback came up to this area and then we saw the next push towards the downside so now the next settings I want to show you guys is actually the settings I recommend for beginners so if you are more of a beginner Trader this is in my opinion the best set settings so to change the settings we go up here to the FIB retracement and we drag the FIB Fibonacci retracement out anywhere on the chart then we once again head up here to the settings tab and now let me actually show you guys really quick how you can change back the settings to the default uh to do this we go down here to where it says template uh you press on this one right here by the way you can also change uh you can also save your settings by clicking save as so if we want to save our current settings we simply click save here and you can call this one for example strong Trends and you can click save here that is something you can do uh but now let's actually apply theault so we take the settings back to how they were in the beginning uh so now for the best settings for beginners what I recommend to do here is once again we keep the zero uh the 0.236 we once again want to unshake this level is in my opinion many times not really that useful you can see that for pretty much all the settings we don't have the 0.236 uh but for this setting you want to keep the 0.382 uh we actually want to unshake the 0.5 um you can keep the 0.5 here uh but you don't really need to have it and why will be clear very soon uh as for the 0.618 you want to keep this one you want to un shake 0.786 and the rest of the bars you want to unshake here and as you guys know as for the colors I like to keep this one the same color as the other one and the last one you can change to any color really uh let's do purple for this one and now we are done here so now with these settings as you can see we have an area here in between the 0.618 all the way down here to to 0.382 and the reason why I really like this setting is for two reasons the first reason is that with this setting we pretty much get the best of Two Worlds uh we include both this area right here which remember this right here is the golden Zone but we also at the same time include the setting for strong Trends so we pretty much get the best of Two Worlds here you can also notice that this zone right here is much broader compared to the previous settings and this can actually be both a good and a bad thing the good thing about the setting is that the price will more often reverse in this area compared to the previous settings but at the same time the zone is broader so the signals will be a little bit less precise but when you use this setting you will realize that the price will so many times reverse in this area you can see this example the price pushed up came back to this area pushed up once again we can drag up a new fi retracement and once again you see the price coming down reverses to the upside we drag out our next fonci Zone and you can see that even for this next move we saw the price coming down to this area but here and this is very important if we take a look at the next move we drag from swing low to swing high you can see that the price actually broke below this Zone you can see the price broke below here and you can actually use this as a potential warning sign that the the trend might be coming to an end because when the price breaks below the 0.618 we are talking about a very deep retracement and deep retracements when the retracements gets too deep especially when we break below the one line here that's a warning sign that this previous uptrend might be coming to an end here and when the price broke below the 0.618 and also we broke the one level here which is the low you can actually see that this was the beginning and the termination of the trend so now last but definitely not least let's take a look at a settings to find exact targets and for this setting we are not going to use the FIB retracement for this setting we're going to use the trend based FIB extension so make sure that you choose this one right here and then you want to drag it out here on the chart you need to press at three random points and you can do this anywhere on the charts when you have done this you once again you head up here to the settings tab of the window that pops up so we go here to settings and for this setting I'm actually going to keep it very simple because I have two main levels that are great for targets so for this one you want to keep the zero H but I'm going to unshake all of these levels all the way to one so you want to uncheck all all of these ones you want to keep the one here uh you want to keep the 1.618 you can also keep the 2. 618 that one I sometimes use especially when an asset breaks an all-time high if we're talking about like a small cryptocurrency or something like that uh the 2.68 can be useful uh but for this example I'm going to unshake all of this so this is a super simple setting uh but it's very useful so you want to have zero 1 and 1.618 and then you want to press okay and now if you look at this chart you might actually remember that this was an example from earlier in the video uh but let me show you guys how this looks like with the new settings so once again we want to Anchor here at the swing low we press the second time on the swing high and we go down here all the way to the swing low then we drag the Fibonacci extension here to the right and we get our Target levels the first and very important Target level is the one level and this one simply comes from the 100% measured move so if this move this swing move right here in order to reach our first Target we need to see a move of the same size and as you can see in this Example The price came up to this area and sold off so this would have been a great level to take some profit the next key Target level is the 1.618 this is yet another key Target that a lot of Traders are paying attention to um and as you can see when the price reached this level we actually sold off here but now let's take a look at how these settings would have done for the next swing so now we anchor at the low all the way down here we go up to the swing to the swing high and then we go down here to the swing low we drag it a bit to the right here and once again you can notice that the 100% measured move move the one right here acted as a key area The price came up to this area and sold off but even more importantly if we look a bit to the left here you can actually see if we drag it even more to the right you can actually see that the 1.618 level is the level here that the price struggled to get through and we have now fallen all the way down here to the one level so now in this final chapter of the course we will put everything with have learned so far together and build a trading strategy and in order to really understand this trading strategy I highly recommend that you have watched the rest of the course and the settings we will use here is what I called the best settings for beginners and I will also use our FIB extension settings but all right so step number one for this trading strategy is that we need to identify a swing low and a swing high and as you can see right here Tesla printed a clear low and we pushed all the way up here and printed a high and let me actually use the replay mode here so we can take a look at how this would have looked like in a real market so when we have identified our swing low and swing high this is the point when we use our Fib retracement so we use our FIB retracement right here we drag it from the swing low to swing high and we use the settings I talked about earlier we also drag this this Zone to the right here and what we are waiting for here is for the price to come back to this Zone and then push higher so let's play this one out for a while here as we can see the price did come back down here to the Zone but we actually don't want to just blindly buy something when the price comes down to our FIB Zone in order for us to build a real trading strategy we need some type of confirmation or in other words we're looking out for confluences we want to see multiple bullish signals happening at the same time and right now we don't really have enough information for a trade so let's play this one out a bit more but at this point it start to look very interesting because as we can see Tesla in the short term have been printing one low and then a lower low while at the same time we're printing lower highs so it looks like we have some sort of downward sloping channel right here and this is actually something we can use as a confirmation so if we continue to play the price here we can see that at this point we broke above the structure so this right here is a bullish signal and at the same time we saw the reversal happening here at our Fibonacci zone so now when we have two bullish signals happening after each other we can actually enter our trade for this example you have multiple ways to set your stop- loss you could argue to set your stop- loss below this little low right here but if we're looking for a large trade I would actually put the stop- loss below you can see the lowest point here of the structure and what are we going to do for our Target levels well as you guys know we H have our Trend based FIB extension so how do we use this one remember we anchor from the low the same low and the same high we used for our our Fibonacci retracement and then the third anchor is down here at the very low so what we now do we zoom out a bit here and we set our Target up here at the one level this right here is the measured move objective and a very common area for the price to reverse and if we play out this trade right here we can see that the price came up here to the one level we saw a small pullback the price actually pushed a tiny bit higher but then the price started to fall but fortunately we don't have to worry about that because we locked in our profits at the 100% measured move all right guys so this course is coming to an end very soon so I want to thank you all so much for watching and if you guys did find any value in the course the best thing you can do to show your support is simply by dropping a like on the video it helps out more than you think with the YouTube algorithm and all that stuff so thank you all to everyone who takes the time to smash up the likes um and also of course if you have any questions about this video or if you have you know any questions about any of my other videos please don't hesitate to drop a comment down below as you might have seen in the comment sections of my other videos I try my very best to answer to every single comments and yeah last but definitely not least when you are ready to continue your trading and Learning Journey I highly highly recommend that you check out this playlist right here in this playlist you can find all my free courses I have made so far and there are many more to come but yeah take care everyone and I hope I will see you in the next video Shia Chow