lesson 5 – fibonacci retracement

Welcome to lesson number 5!

This one is about the „fibonacci retracement tool“.

You can find it in the „tools“ bar in TradingView:

When it comes to trading, you can either pull a bullish or a bearish fib.

The fibonacci pull CAN identify a resistance or a support zone. You should never use it as the only
tool when it comes to trading. A trader is always looking for more confluence to take a trade.

If you know how to use the fibonacci retracement tool, then you will have a great confluence tool for
trading divergences and convergences.

How to pull the fib?

Always pull it from the left to the right.

How should my tool look like? Which fibonacci levels are the most important?
Here you can see an example for a perfect working fib pull:

The price did run into the fibonacci retracement levels ( .618 and .66 ) that were acting as resistance.
They have given a big bearish reaction combined with bearish divergences.

How to find the most important fib pulls?

It requires some time and experience to get an „eye“ for which fib pull will be important / which will
be not etc.

After some time you will understand „that you want to see important moves correcting“. For that
this retracement tool will be extremely helpful.

end of lesson 5 – Sincerely, Chris Goldstein