Use Fibonacci For Take Profit Levels

#Fibonacci #ForexFibonacci

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In today's video i'm talking about Fibonacci levels (retracement/expansion) but before we move on any further let's do a quick intro to who is Fibonacci:

Who is Fibonacci?
" Leonardo Bonacci – also known as Leonardo Fibonacci – was an Italian mathematician in the 12th century. He was considered the most talented Western mathematician of his time and one of the greatest of all time. Although Fibonacci himself did not come up with what is now known as the Fibonacci sequence, he certainly introduced the phenomenon to the West in his book Liber Abaci."

If you would like to read the full ARTICLE on the subject you can find it here:
🛑 Fibonacci - Beginners Guide - https://vladimirribakov.com/fibonacci-guide-part-1/

Two more VIDEOS on Fibonacci:
🛑 Fibonacci in Trading - Beginners Tutorial Part 1 https://www.youtube.com/watch?v=VXOH5EIrxCo
🛑 How to trade like a pro with Fibonacci levels - https://www.youtube.com/watch?v=Dok77B_socA
👉 How to use Fibonacci levels for targets \ take profits?

In its nature the Fibonacci expansion and Fibonacci retracement studies are predictive rather than lagging indicators.

To illustrate better the difference, think about RSI (Relative Strength Index). RSI is calculated by taking the last X periods (or candlesticks), crunching the numbers, applying a certain formula and voila, we have an output. The output or the result in this case is lagging, because we are using past data to derive it.

When we are talking about Fibonacci levels however, especially Fibonacci Expansion, we are trying to forecast or to predict where the price might be going in the FUTURE. So again we are using past data (swing highs and low to plot the fibo) but based on that we are trying to look into the future.
That was a quick lesson on lagging vs predictive indicators.

Now to the point. How to use Fibonacci in your trading to get target/take profit levels.
When we are looking at it from multi time frame perspective, if you are using cycles/waves, the Fibonacci levels are irreplaceable part of your trading.

When you combine the cycle's phases or waves with the Fibonacci levels you get a pretty clear picture where the price is supposed to go.

Here are a few examples:

👉 Fibonacci expansion
When the cycle starts developing, whether that is trending structure or corrective structure, if you are able to identify the first wave, you can easily project where the second wave should be ending.
In most cases that would be that 100% Fibonacci expansion.

In other cases when the trend starts developing into a trending structure we might aim at 167% Fibonacci expansion for example.

👉 Fibonacci retrace + Fibonacci expansion combination
This is where it starts to become real fun. Imagine there is a trending structure that based on your analysis is over. At that point you want to see a pullback to approximately 38.2%-50% Fibonacci retracement of the entire trending structure.
So far so good.

Now we wait for the first wave of the ABCD (namely leg AB) to develop and this is where we start looking to trade leg CD. However at that moment we can also start projecting where wave CD should be ending. To do so this time we use Fibonacci expansion measuring wave AB and projecting wave CD.

What do you think happens when the Fibonacci retracement level target matches with the Fibonacci expansion target? :)
A monster trade opportunity with fantastic levels to follow, that attract the price like a magnate.

👉 Money management
Money management and risk management are crucial for your success. Not just in the trading business - in any business. If you are risking too much on a single opportunity, you will eventually lose it all.
If you are being reckless you will implode and lose all of your capital!

Always apply strict money and risk management to your trading.

🛑 HERE ARE A FEW MANDATORY TRADING CONCEPTS AND TECHNIQUES:🛑
✔️ To learn more about the usage of the MACD and RSI and divergence combination –
✔️ MACD - https://youtu.be/JPdQQn-nsGk
✔️ RSI - https://youtu.be/iMUbhhF7VGE
✔️ Hidden Divergence - https://youtu.be/SijP6BfaV7c
✔️ MACD + RSI Powerful Forex Trading Strategy
https://youtu.be/0BwO81u2FR0
✔️ 3 Steps MACD Trading Strategy For Forex Traders
https://youtu.be/TsnzvVSwGUg

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Видео Use Fibonacci For Take Profit Levels канала VladimirRibakov