The Best Fibonacci Scalping Strategy (Stacking Confluence) — Transcript

Full transcript

1. 0:00Here's the truth, and you might not like it, but  Fibonacci retracements to Fibonacci retracement
2. 0:05levels are a little bit weak, and you can't always  rely on them. I know I explained it in a previous
3. 0:12video, but there are other things that will  make this absolutely lethal. And in this video,
4. 0:18I'm going to explain all three. This is not just  another typical Fibonacci retracement tutorial
5. 0:24video, howto. This one is going to change  your life forever. The four things that I'm
6. 0:30going to discuss in this video is using Fibonacci  retracements with the RSI, Fibonacci retracements
7. 0:35with support and resistance levels, Fibonacci  retracements with the previous days high and low
8. 0:42point, and four, putting them all together. Let's  start with the RSI. Most traders know about normal
9. 0:49divergences. Price makes a higher high, the RSI  makes a lower high. But what really matters here
10. 0:57is not normal standard regular divergences. What's  important here is going to be hidden divergences.
11. 1:04That's when price makes a higher low, but the  RSI makes a lower low. It signals a monstrous
12. 1:13trend continuation if you know how to spot them.  Now, stacking this with a Fibonacci retracement,
13. 1:20if your pullback lands right in that 0.618 618  zone and the RSI shows a hidden divergence. That's
14. 1:29a golden entry signal. You're not just buying a  random retracement. You're buying where both price
15. 1:36action and momentum agree. Now, here's what this  looks like on a chart. So, this is basic, simple,
16. 1:43and easy to understand. We're looking for market  structure with higher highs and higher lows. And
17. 1:49you're only looking at the higher lows. This low  is higher than this low. But if we look at the
18. 1:56RSI, you can see that we had a low here and the  next dip in the RSI was a lower low. That is a
19. 2:05hidden bullish divergence. Now, put your Fibonacci  retracement overlay on that. It literally like
20. 2:11directly to the 0.618 and you got yourself a  banger trade. Now, let's get into the second
21. 2:17part using Fibonacci with support and resistance.  Fibonacci levels on their own are just numbers.
22. 2:24But when a fib retracement lands exactly in a  strong zone that's been tested before, that's a
23. 2:31confluence. For example, let's say you put a fib  and the 0.5 retracement lines up with a support
24. 2:38and resistance zone from the last two swing lows.  That zone just went from being a random line to a
25. 2:45high probability entry. Always think does this fib  level mean something on the chart beyond just the
26. 2:53number? Stacking confluences is the name of the  game here. Now let's see what this looks like on
27. 2:58the charts. So we have this previous structure  where we had multiple touch points constantly
28. 3:05hitting a level of support. Once price broke  through with a lot of momentum, price retraced.
29. 3:12So, you slap your Fibonacci retracement tool on  there and you can see we rejected at the 0.618,
30. 3:19which was also a previous support and resistance  zone where price rejected multiple times. Again,
31. 3:27that right there is a lethal weapon. Now, the  third part, the previous days high and or low,
32. 3:36these levels act like magnets. Traders love  targeting them. institutions love sweeping them.
33. 3:43And now picture this. You draw a fib retracement  and the 0.618 line lines up exactly with
34. 3:52yesterday's low. That's just not one reason to  watch. That's two layers of liquidity stacking on
35. 3:59top of each other. In practice, these setups often  explode because they've got breakout traders,
36. 4:06stop hunters, and fib traders all piling into the  same zone. you will have an aggressive movement
37. 4:12from this area. But first, let's see what it  looks like on the charts. Now, what we want to do
38. 4:17is mark up each day separately. So, let's zoom in  right here. We have the previous day's high and we
39. 4:25have the previous day's low point right here. the  high. You had the low, a huge momentum swing up,
40. 4:33a hard pullback, sweeping liquidity from the  previous day's low, rejecting off the Fibonacci
41. 4:40gold zone, and the entire subsequent day and a  half was bullish. And this is not a tiny move,
42. 4:46people. This is on the hourly time frame. So,  this move was a monster from the fib gold zone
43. 4:53at 24,000 up to its top 24,490. Again, so lethal  it should be illegal. Now, imagine all three
44. 5:04lining up. A fib retracement to the 0.618 with a  hidden RSI divergence. and the level is sitting
45. 5:15right at yesterday's high, which also doubles as  a resistance zone. That's what the pros wait for.
46. 5:23This is where discipline comes in. Most traders  take 20 lowquality setups a week. Prot traders
47. 5:31might just take two, but those two trades stack  every possible confluence and gives traders the
48. 5:39edge that they're looking for. So, you're not  just placing a trade, you're betting the house
49. 5:44because you know that trade setup is a gold mine.  That's the difference between people that gamble
50. 5:52and people that trade with conviction because they  know this is their edge. So, what should you do
51. 5:58with this information? Now, here is your action  plan. Every single day going forward now, look at
52. 6:04these confluences and see when they start stacking  up. Two of them is great. three of them is
53. 6:10awesome. All four at the same time. It's like when  all the planets align and then there's a full moon
54. 6:17in front of it with a solar eclipse. If you guys  want more high value educational videos just like
55. 6:24this, check out the trading floor at trdfloor.com.  And if you're still struggling getting into a
56. 6:29trade because you keep secondguessing yourself, go  check out our new earn as you learn program where
57. 6:35we provide you the trade setups so that you can  see what good trades look like and feel like to
58. 6:42make those profits. And while you're executing  those trades, you can learn about day trading.
59. 6:48So now you don't have to wait 6 months until you  can start trading. You can do it from day one as
60. 6:52you're learning. Check out the earn as you learn  program at trdfloor.com. I hope this video helped
61. 6:57you guys out. And if you have questions that you  want answered in a video response, put them in
62. 7:02the comment section down below. Thanks so much  for watching and we'll see you in the next one.