In this section we will cover the exact fibonacci Levels & areas we use and look for, and also how we combine fibonacci levels with key levels and areas of confluence.
Fib levels we use & fib quality
We are now going to show you the exact fibonacci levels we use and also go through the quality of the different fibonacci levels as some fib levels are of ‘higher quality‘ than others
FIB LEVEL5 WE USE & FIB QUALITY
- 50% (0.5) fibonacci level:
- “Great quality” fib level as it represents a “deep pullback”
- The area between 50% to 61.8% fib:
- Again a “great quality” fib level as itrepresents a “deep pullback”
- 61.8% (0.618) fibonacci level:
- This is “the best” & “highest quality” fib level because it represents a “very deep pullback” and “best area of value”
50% (0.5) fibonacci level:
The area between 50% to 61.8% fib:
61.8% (0.618) fibonacci level:
The problem using fib the “traditional” way
We are now going to show you the traditional‘ way average traders use fibonacci levels to enter trades on which involves them entering trades ‘instantly‘ once price reaches a fib level they use
THE PROBLEM
Assuming” that price will reverse “solely” for reaching a fib level & not take into account the multitude of other moving parts within a noisy and imperfect market is guessing.
- Fibonacci levels D0 INDEED work as support & resistance levels
- FIBONACCI LEVELS ON THEIR OWN ISN’T ENOUGH
Exactly how we use fibo
We’re going to show you exactly how we use fibonacci levels as part of our trading process where it actually helps increase the overall trade quality of a trade opportunity
WE COMBINE FIB LEVELS “WITH”
- Key Levels of Support & Resistance
- Areas of Confluence
= TO INCREASE TRADE QUALITY
COMBINE FIB LEVELS “WITH” Key Levels of Support & Resistance
COMBINE FIB LEVELS “WITH” Areas of Confluence TO INCREASE TRADE QUALITY
Areas of Confluence
Areas of Confluence , are area where multiple schools of traders are stacked and looking to take action which presents trade opportunities
These trade opportunities at these areas of confluence where many schools of traders are stacked have a higher probability of going in your favour due to many traders taking action at the same time which creates momentum for the trade
Tarik fibo
