Fibonacci General
Fibonacci Retracement: For Projections and Retracements:
The subject of Fibonacci levels is quite intriguing. To fully understand and see the term Fibonacci levels, one should understand the Fibonacci series. The origin of the Fibonacci series can be traced back to ancient Indian mathematicians, and various claims date back to 200 B, C. However, during the XII century, Leonardo Pisano Bogollo, an Italian mathematician from Pisa, known to his friends as Fibonacci, found the Fibonacci numbers.
The Fibonacci series is a series of numbers that start from zero and remain arranged so that the cost of any number in the series is the sum of both previous numbers.
The Fibonacci sequence is as follows:
0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610…
Note the following:
233 = 144 + 89
144 = 89 + 55
89 = 55 +34
It goes without saying that the series stretches to infinity. There are few interesting features of the Fibonacci series.
Divide any number in the series by the previous number; the interaction is continuously about 1,618.
Exemplifying:
610/377 = 1,618
377/233 = 1,618
233/144 = 1,618
The quantity of 1.618 is considered the golden ratio, also popular as Phi. Fibonacci numbers have their connection with nature. The proportion can be found in the human face, flower petals, animal bodies, fruits, vegetables, stone formations, galaxy formations, and so on. Obviously, let us not enter into this dispute, because we would be diverting from the primary issue. For those interested, I suggest that you search the Internet for examples of the golden ratio, and you will be pleasantly surprised. Beyond the characteristics of the interaction, an important consistency can be discovered once a number in the Fibonacci series is divided by its rapidly following number.
Exemplifying:
89/144 = 0,618
144/233 = 0,618
377/610 = 0,618
In this period, keep in mind that 0.618, once expressed as a percentage, is 61.8%.
A similar consistency can be discovered once any number in the Fibonacci series is divided by a number 2 places larger.
Exemplifying:
13/34 = 0,382
21/55 = 0,382
34/89 = 0,382
0.382, once expressed in percentage terms, is 38.2%.
In addition, consistency is once a number in the Fibonacci series is divided by a maximum number 3.
Exemplifying:
13/55 = 0,236
21/89 = 0,236
34/144 = 0,236
55/233 = 0,236
0.236, once expressed in percentage terms, is 23.6%.
2 - Fibonacci for Retracements, Projections.
As we now understand, Fibonacci use are movements on the chart that are in opposition to the trend. To use Fibonacci Levels, we must first detect the 100% Fibonacci shift. The 100% displacement could be an upward rally or a downward rally. To mark the 100% offset, we must pick the most current high and low on the chart. When this is identified, we connect them using a Fibonacci Levels instrument.
Fibonacci Retracements:
At this point I will say that there are thousands of levels given by different authors but here I will tell you the ones that I personally use and why I use them, let's start with the backwards:
Its most common levels are:
The pullbacks are usually at the following levels and are all too obvious. Besides that they are things mentioned by Theory formulated by Charles H. Dow in 1897 which is based on the movement of the Dow Jones index and ensures that when the Dow Jones Industrials, reaches a high or a low, the Dow Jones Transportation index should not take long to follow, otherwise it is considered false or wrong. Which is fulfilling the reversals of thirds of this author, in addition that these are the ones mentioned by Elliot (Elliot Waves Theory).
38.2%
50.0%
61.8%
The Fibonacci Retracement tool is located in the Gann & Fibonacci tools area.
Example ETH a Short, Backspace:
Step by step:
Identify the beginning of the trend, possibly after a fall. From the beginning of the trend. Putting 100% From the start of the trend.
Placing 0% at the end of it. This is only used in this way to display Fibonacci Retracements.
Here we can notice a possible trend start and end. Mostly the beginning of trend is after a fall.
Although it is worth adding that here we can note that the fall prior to this point touched the same area since its beginning to the upside, in its shadow, so we could consider it as the beginning of a trend.
Although if you prefer closing prices to taking into account the shadows, we could consider as a clear indication of trend the first drop of the green dot. So we would take into account only this one. But as I prefer to vary since Fibonacci is not really accurate. As the same Dow Theory that only speculates possible falls already mentioned above based on thirds.
And so we would end up with two Fibonacci to be able to base it on a range when using it. Both of them following the same basis of placing 100% at the beginning of the trend and 0% at the end of the trend. To be able to measure BACKWARDS not PROJECTIONS. Please understand this. This would be looking at the chart pretty close, but let's go a little more accurate to 1w chart. And let's visualize.
Candles:
In 1w chart if we use our faithful friend Heikin Ashi we can visualize that the beginning of trend is much higher. Although of course, we could use that area since it has a strong bullish rally after this one. But let's project different scenarios. Personally, I will take several points.
Heikin Ashi:
}
b]Lines Closing Price:
And here we can see the zones that I will take into account to be able to visualize a pullback, although of course, many will say that I am indecisive, but really every trader has different thoughts from where I start the trend. And I prefer to have different perspectives at different points. Although I prioritize the Fibonacci retracement placed on a weekly chart because of the end of cycle theme placed by the PiCycle indicator and the fundamental of a possible deflation.
In order not to confuse us too much what we will do is to use the Drawing Block. It is located at the side of TradingView on the bottom right side. This tool is used to stop seeing certain "Drawings on the chart that we do not want to have".
When you click on this part, you will see which one you are selecting.
We give Anticlick, and change the name, this time I put the colors I put to each Fibonacci so I know which one I am removing from the drawing.
Also, if you notice what we will use it for. When we put the mouse over these, we can notice that "An Eye" appears when we click on it, this "Drawing" will disappear from the graphic, placing the crossed out eye. If you click on it again, it will "Appear" again.
So we can place 2 Fibs as we like, one from the beginning to the end of the PiCycle and the other from the last retracement to the highest peak. We will see both points.
Chart 1 Week:
Not really knowing how far the fall could be, I have mentioned the issue of the psychological zone at 0.5 Fib. Which could help us to retest the 0.382 and in case of not being overcome to fall back to levels of 0.618 - 0.786. As Possible supports. As we are not fortune tellers, in this case in 1 week chart due to the current economic crisis would start to buy scalarly from 0.382 down.
In order to average. ETH is a fairly liquid currency in general. But in the middle of the crisis we could see a nice pullback, this crisis issue is explained here in our profile in the latest BTC analysis and in a chart.
Now understanding this, I would open a long position at 0.618-0.786 for the theme of the crisis, using x2 as maximum Leverage and in the case we are in red, keep the position for days, weeks, months or years. For this you must have good capital to cover the 0.002-0.02% of Funding Rate.
Daily Chart:
If we look at the Daily Chart, we can see that we have tested 0.786 Fib retracement and returned to the upside. Personally I believe that it will return to test 0.618-0.5 Fib Retracement, but I do not consider that we will start a new Bullish, maybe in a double cycle, but currently inflation is betting that it will soon begin to deflate. Which would affect the whole economy in general.
Lines:
Candles:
I have already explained the difference between Candles and Lines in the other parts of the guide.
Fibonacci projections:
Projection levels are areas where to wait for the price. They can be applied either to the upside or the downside. Although it depends on the trading platform you use, it is usual that 100% is placed at the end of the trend. To see Projections.
Its most common levels are:
Highly Possible Areas to Overcome:
138,2%
150,0%
161,8%
Areas of possible resistance:
223,0%
238,2%
250,0%
261.8%
We will use the same tool.
Projection Example:
This is a projection placed after the retracement occurred from 40667 to 30304 PRIORITY CLOSING PRICE (Lines). I am not taking into account the shadows that exist in Candles.
We apply the following, but in Candles:
And we can perfectly visualize that the Fibonacci levels of Resistance existed Pullbacks.
Fact:
A RETREAT is 0% Peak Maximum to 100% Peak Minimum.
A PROJECTION is 100% Peak Maximum to 0% Peak Minimum.
+It should be noted that in the resistance zones of the projection we do not get out, just increase the StopLoss and let your position run, even if it goes down, you will win. But it is always good to keep them in mind, there are times where it can reach up to 400% of Fib Level. Although they are rare.
1- Backspace configuration:
- 0 -> Final Value.
- 0.23 -> Possible Test Zone
- 0.382 -> Euphoria Zone.
- 0.5 -> Psychological zone of attempted return to the upside.
- 0.618 -> Scalar Buying Zone
- 0.786 -> Futures Position Zone, although manage your risk. Never use more than 1% of all your capital and 2x Leverage per trade. In addition, in case the trade does not go as expected, you can place 1% more of your capital and take the liquidation to 0. Although keep in mind that this works if you know how to manage and your capital is sufficient for the daily Funding Rate charged by almost all exchanges.
- 1 -> Start value.
2- Projection Configuration:
0 -> Start value
0.23 -> Testing
0.382 -> Buy (Open Long). Stop Below -0.23 Fib. Or 0 Liquidation, if it is a solid project and you want to let it run, 1-2% per trade, basic rule of most top Binance futures traders.
0.5 -> Psychological Zone
0.618 -> Demand Zone
0.786 -> Demand Zone
1 -> 'Final Value.
1.23 -> Bullish test
1,382 -> Possible sales, but there will still be demand.
1.618 -> Sell, Possible return to test 1.23 - 1.382.
1.786. -> Satisfaction.
2 -> Satisfaction.
2.23 -> Final Test.
2,382 -> Euphoria (Possible Massive Sales).
2,618 -> Fear (Massive Sales).
2,786 -> Sale.
This is based on the fact that, in solid projects, it is always easy to overcome 1,382 to 1,618. From then on, it is recommended to increase the StopLoss on earnings. Because there may be cases where we are going to touch up to 400% on a Fib scale.
With nothing more to say, I hope it has helped you :). The levels will match if you use it as you want, but at least you have to know how to really use this tool. There is the "Fibonacci" tool without Retracement that you can visualize what is explained here. Although sadly tradingview does not have it explained, and you have to use Fib Retracement as if it were Fibonacci simply changing a little the way to use it.
The subject of Fibonacci levels is quite intriguing. To fully understand and see the term Fibonacci levels, one should understand the Fibonacci series. The origin of the Fibonacci series can be traced back to ancient Indian mathematicians, and various claims date back to 200 B, C. However, during the XII century, Leonardo Pisano Bogollo, an Italian mathematician from Pisa, known to his friends as Fibonacci, found the Fibonacci numbers.
The Fibonacci series is a series of numbers that start from zero and remain arranged so that the cost of any number in the series is the sum of both previous numbers.
The Fibonacci sequence is as follows:
0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610…
Note the following:
233 = 144 + 89
144 = 89 + 55
89 = 55 +34
It goes without saying that the series stretches to infinity. There are few interesting features of the Fibonacci series.
Divide any number in the series by the previous number; the interaction is continuously about 1,618.
Exemplifying:
610/377 = 1,618
377/233 = 1,618
233/144 = 1,618
The quantity of 1.618 is considered the golden ratio, also popular as Phi. Fibonacci numbers have their connection with nature. The proportion can be found in the human face, flower petals, animal bodies, fruits, vegetables, stone formations, galaxy formations, and so on. Obviously, let us not enter into this dispute, because we would be diverting from the primary issue. For those interested, I suggest that you search the Internet for examples of the golden ratio, and you will be pleasantly surprised. Beyond the characteristics of the interaction, an important consistency can be discovered once a number in the Fibonacci series is divided by its rapidly following number.
Exemplifying:
89/144 = 0,618
144/233 = 0,618
377/610 = 0,618
In this period, keep in mind that 0.618, once expressed as a percentage, is 61.8%.
A similar consistency can be discovered once any number in the Fibonacci series is divided by a number 2 places larger.
Exemplifying:
13/34 = 0,382
21/55 = 0,382
34/89 = 0,382
0.382, once expressed in percentage terms, is 38.2%.
In addition, consistency is once a number in the Fibonacci series is divided by a maximum number 3.
Exemplifying:
13/55 = 0,236
21/89 = 0,236
34/144 = 0,236
55/233 = 0,236
0.236, once expressed in percentage terms, is 23.6%.
2 - Fibonacci for Retracements, Projections.
As we now understand, Fibonacci use are movements on the chart that are in opposition to the trend. To use Fibonacci Levels, we must first detect the 100% Fibonacci shift. The 100% displacement could be an upward rally or a downward rally. To mark the 100% offset, we must pick the most current high and low on the chart. When this is identified, we connect them using a Fibonacci Levels instrument.
Fibonacci Retracements:
At this point I will say that there are thousands of levels given by different authors but here I will tell you the ones that I personally use and why I use them, let's start with the backwards:
Its most common levels are:
The pullbacks are usually at the following levels and are all too obvious. Besides that they are things mentioned by Theory formulated by Charles H. Dow in 1897 which is based on the movement of the Dow Jones index and ensures that when the Dow Jones Industrials, reaches a high or a low, the Dow Jones Transportation index should not take long to follow, otherwise it is considered false or wrong. Which is fulfilling the reversals of thirds of this author, in addition that these are the ones mentioned by Elliot (Elliot Waves Theory).
38.2%
50.0%
61.8%
The Fibonacci Retracement tool is located in the Gann & Fibonacci tools area.
Example ETH a Short, Backspace:
Step by step:
Identify the beginning of the trend, possibly after a fall. From the beginning of the trend. Putting 100% From the start of the trend.
Placing 0% at the end of it. This is only used in this way to display Fibonacci Retracements.
Here we can notice a possible trend start and end. Mostly the beginning of trend is after a fall.
Although it is worth adding that here we can note that the fall prior to this point touched the same area since its beginning to the upside, in its shadow, so we could consider it as the beginning of a trend.
Although if you prefer closing prices to taking into account the shadows, we could consider as a clear indication of trend the first drop of the green dot. So we would take into account only this one. But as I prefer to vary since Fibonacci is not really accurate. As the same Dow Theory that only speculates possible falls already mentioned above based on thirds.
And so we would end up with two Fibonacci to be able to base it on a range when using it. Both of them following the same basis of placing 100% at the beginning of the trend and 0% at the end of the trend. To be able to measure BACKWARDS not PROJECTIONS. Please understand this. This would be looking at the chart pretty close, but let's go a little more accurate to 1w chart. And let's visualize.
Candles:
In 1w chart if we use our faithful friend Heikin Ashi we can visualize that the beginning of trend is much higher. Although of course, we could use that area since it has a strong bullish rally after this one. But let's project different scenarios. Personally, I will take several points.
Heikin Ashi:
b]Lines Closing Price:
And here we can see the zones that I will take into account to be able to visualize a pullback, although of course, many will say that I am indecisive, but really every trader has different thoughts from where I start the trend. And I prefer to have different perspectives at different points. Although I prioritize the Fibonacci retracement placed on a weekly chart because of the end of cycle theme placed by the PiCycle indicator and the fundamental of a possible deflation.
In order not to confuse us too much what we will do is to use the Drawing Block. It is located at the side of TradingView on the bottom right side. This tool is used to stop seeing certain "Drawings on the chart that we do not want to have".
When you click on this part, you will see which one you are selecting.
We give Anticlick, and change the name, this time I put the colors I put to each Fibonacci so I know which one I am removing from the drawing.
Also, if you notice what we will use it for. When we put the mouse over these, we can notice that "An Eye" appears when we click on it, this "Drawing" will disappear from the graphic, placing the crossed out eye. If you click on it again, it will "Appear" again.
So we can place 2 Fibs as we like, one from the beginning to the end of the PiCycle and the other from the last retracement to the highest peak. We will see both points.
Chart 1 Week:
Not really knowing how far the fall could be, I have mentioned the issue of the psychological zone at 0.5 Fib. Which could help us to retest the 0.382 and in case of not being overcome to fall back to levels of 0.618 - 0.786. As Possible supports. As we are not fortune tellers, in this case in 1 week chart due to the current economic crisis would start to buy scalarly from 0.382 down.
In order to average. ETH is a fairly liquid currency in general. But in the middle of the crisis we could see a nice pullback, this crisis issue is explained here in our profile in the latest BTC analysis and in a chart.
Now understanding this, I would open a long position at 0.618-0.786 for the theme of the crisis, using x2 as maximum Leverage and in the case we are in red, keep the position for days, weeks, months or years. For this you must have good capital to cover the 0.002-0.02% of Funding Rate.
Daily Chart:
If we look at the Daily Chart, we can see that we have tested 0.786 Fib retracement and returned to the upside. Personally I believe that it will return to test 0.618-0.5 Fib Retracement, but I do not consider that we will start a new Bullish, maybe in a double cycle, but currently inflation is betting that it will soon begin to deflate. Which would affect the whole economy in general.
Lines:
Candles:
I have already explained the difference between Candles and Lines in the other parts of the guide.
Fibonacci projections:
Projection levels are areas where to wait for the price. They can be applied either to the upside or the downside. Although it depends on the trading platform you use, it is usual that 100% is placed at the end of the trend. To see Projections.
Its most common levels are:
Highly Possible Areas to Overcome:
138,2%
150,0%
161,8%
Areas of possible resistance:
223,0%
238,2%
250,0%
261.8%
We will use the same tool.
Projection Example:
This is a projection placed after the retracement occurred from 40667 to 30304 PRIORITY CLOSING PRICE (Lines). I am not taking into account the shadows that exist in Candles.
We apply the following, but in Candles:
And we can perfectly visualize that the Fibonacci levels of Resistance existed Pullbacks.
Fact:
A RETREAT is 0% Peak Maximum to 100% Peak Minimum.
A PROJECTION is 100% Peak Maximum to 0% Peak Minimum.
+It should be noted that in the resistance zones of the projection we do not get out, just increase the StopLoss and let your position run, even if it goes down, you will win. But it is always good to keep them in mind, there are times where it can reach up to 400% of Fib Level. Although they are rare.
1- Backspace configuration:
- 0 -> Final Value.
- 0.23 -> Possible Test Zone
- 0.382 -> Euphoria Zone.
- 0.5 -> Psychological zone of attempted return to the upside.
- 0.618 -> Scalar Buying Zone
- 0.786 -> Futures Position Zone, although manage your risk. Never use more than 1% of all your capital and 2x Leverage per trade. In addition, in case the trade does not go as expected, you can place 1% more of your capital and take the liquidation to 0. Although keep in mind that this works if you know how to manage and your capital is sufficient for the daily Funding Rate charged by almost all exchanges.
- 1 -> Start value.
2- Projection Configuration:
0 -> Start value
0.23 -> Testing
0.382 -> Buy (Open Long). Stop Below -0.23 Fib. Or 0 Liquidation, if it is a solid project and you want to let it run, 1-2% per trade, basic rule of most top Binance futures traders.
0.5 -> Psychological Zone
0.618 -> Demand Zone
0.786 -> Demand Zone
1 -> 'Final Value.
1.23 -> Bullish test
1,382 -> Possible sales, but there will still be demand.
1.618 -> Sell, Possible return to test 1.23 - 1.382.
1.786. -> Satisfaction.
2 -> Satisfaction.
2.23 -> Final Test.
2,382 -> Euphoria (Possible Massive Sales).
2,618 -> Fear (Massive Sales).
2,786 -> Sale.
This is based on the fact that, in solid projects, it is always easy to overcome 1,382 to 1,618. From then on, it is recommended to increase the StopLoss on earnings. Because there may be cases where we are going to touch up to 400% on a Fib scale.
With nothing more to say, I hope it has helped you :). The levels will match if you use it as you want, but at least you have to know how to really use this tool. There is the "Fibonacci" tool without Retracement that you can visualize what is explained here. Although sadly tradingview does not have it explained, and you have to use Fib Retracement as if it were Fibonacci simply changing a little the way to use it.
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