The Best Fibonacci Trading Strategy — Transcript

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1. 0:00I'm going to show you a quick tutorial  on how and when to start drawing your
2. 0:03Fibonacci retracement tool. It's going to take  me like 2 minutes, so just sit tight. All right,
3. 0:09so these are my normal Fibonacci retracement tool  settings. The Fibonacci retracement tool is the
4. 0:15third icon down on the lefth hand toolbar. I  put a star next to it because I use it every
5. 0:20single day. My settings are as follows. These  are the ones I stick with because they keep
6. 0:25your charts the cleanest and they're the most  useful. But because people have been asking,
7. 0:30what I want you to do is add an extra one and give  it the number 0.33. Then just click okay. Today's
8. 0:37move on German 40 was absolutely textbook perfect.  Beautiful. Oh my god. Here is today's trades,
9. 0:44two sell positions. Second one, I closed early.  We had this monstrous bearish momentum down. And
10. 0:49people are always asking me, how do you know when  it's going to start retracing? That's why we've
11. 0:53added the 33% rule. The momentum move that breaks  the previous structure is what you want to measure
12. 1:02from top to bottom in a bearish move. So you start  to draw your fib tool and you wait until price has
13. 1:09reached the 33%. Which means of that move it's  gone backwards or up in price 33% of that move.
14. 1:21And your entry price is either the.5 or the 618.  I prefer to split the difference and put it right
15. 1:27in the middle. But because this move continued  down, that means that you continue taking your
16. 1:33Fibonacci retracement tool on every single candle  that closes until a retracement move starts going
17. 1:39to the 33%. Then you can do one of two things.  I prefer my way that's the easy way is to set a
18. 1:46pending limit order. You set a pending order  splitting the difference between the 0.5 and
19. 1:52the 618. Your stop loss is between the 618 and  the one and your take-profit is going to be the
20. 2:00previous low. That's going to give you a one to  2.5 risk-to-reward trade. This is the best way
21. 2:06to do it. But if you want to wait for a rejection  candle, wait for candle to close, stop loss above
22. 2:12the previous structure. Again, take profit is  going to be the previous low. That's going to
23. 2:17get you a 1 to 1.8 depending on the size of the  bearish candle. That is your trigger entry. So
24. 2:21that trade played out absolutely beautifully  today. Then price started to retrace again,
25. 2:26taking my fib tool from the top of the move to  the bottom of the move. Setting in a limit order
26. 2:31after it's reached a.33 retracement. Entering  in a short position stop-loss between here,
27. 2:37take profit here. But because it was  getting towards the end of the day,
28. 2:40I wanted to be out of that trade. So I closed it  early. But as you can see, the price is moving
29. 2:44to where it wants to go. It's either going to  break the structure or create a double bottom.
30. 2:48Either way, we're safe. Today was so perfect. I  couldn't resist making a video on this. This is
31. 2:53Fibonacci trading at its finest. If you guys  have more questions on this specific topic,
32. 2:58let me know in the comment section down below.  I hope you have an amazing Halloween. Eat lots
33. 3:02of candy and be safe tonight. Appreciate  you guys and we'll see you in the next