How to use Fibonacci Retracement || Fibonaccci Trading Strategy || Anish Singh Thakur | Boomingbulls
Hello everyone my name is Anish Singh Thakur and I welcome you to a wonderful video where it’s such a demanded topic, it has so much demand that Fibonacci I have never seen this many comments for any topic so I’m very happy that I’m making it for you So there will be many videos but this will be the first one where you will see me telling you who was Fibonacci? What did he do? What are Fibonacci number, what is the golden ratio? I will explain it practically In theory first and how it works and then a practical example and by using the replay mode a practical example in the situation we’re in right now what results can we get in those All this you will get to see in this video it’s a really important video, like it watch it carefully or watch it attentively Don’t take a look at it in 1.5x or in hassle like let’s just finish it because if you’re on a laptop it’ll be better. So let’s start the video and let’ start with What is Fibonacci? What is Fibonacci? Firstly, who was Fibonacci.
Fibonacci was a mathematician. Ok He was a mathematician who is known to be the “the most talented western mathematician of middle ages”. So he was a mathematician which means he used to deal in numbers. He releases a Fibonacci series. What is a Fibonacci series? Fibonacci numbers are those which are found in nature and How? we add them 0, 0 + 1 =1, 1 + 1 = 2, 1 + 2 = 3, 2 + 3 = 5, 5 + 8 = 18 like this 21, 34, 55 So these are all Fibonacci numbers, so what’s special about them? It’s written that, ‘on many plants, the number of petals is Fibonacci.’. Ok, buttercups have 5 petals, these have 3, 8 in these, 13 in these and it’s said that this is found in the whole nature Now, if I google You understood Fibonacci numbers now Now I’ll google here Fibonacci in nature so what will we find? If I click in Fibonacci nature then you’ll get to see in the photos that everywhere, in flowers, the human body, or in our face Everything has a ratio, now what is that ratio let’s talk about that ratio See the ratios if we divide Fibonacci numbers from each other like this, it comes to be around 1.6
So this ratio 1.6, we call it the golden ratio, if you’ll google it golden ratio, even if you don’t write Fibonacci just golden ratio then you’ll get the number 1.618. you’ll get the number 1.618 You’ll get it like this, this is found in the nature so the people said ‘so this is how it is huh’, does it work everywhere? In the hand, in animals, in flowers? then it must work in the stock market as well So it should. So people developed a tool, now if I talk about the tool, many tools have been developed to date 1. Fibonacci Retracements 2. Fibonacci Arcs
3. Fibonacci Fans 4. Fibonacci Time Zones There are a lot of them, today we’ll study Fibonacci Retracements Ok, so let’s start Now Fibonacci Retracement the tool, let me open Tradingview and after opening Tradingview here let’s open a random stock. If I come here and show you that this is where you find the Fibonacci tool, Where? Can you see here, Fibonacci Retracement Ok before we further go ahead I want to ask what’s the 2nd word Fibonacci - Retracement Now before understanding Fibonacci Retracement, do you know what retracement is? What is retracement? Pullback, what’s pullback? Pullback means if my main trend is strong upside then this 2nd move, the secondary move will be a pullback i.e. retracement. If my main trend is down, when the market will come up, I’ll call this part a pullback or retracement or secondary move. So this Fibonacci Retracement, gives me the retracement So Firstly we got know what it does thank god, so what this does is it tells how much retracement will the market show, it gives me information on that For an example if the market is going up, and after going up- There was a swing it started going up from this point and made a high, how will we know when it’s made a high? When red candles start to form and the market starts to go down, so we get to know that We can use the Fibonacci tool, Why? Why can we use it, now I want to know that whether the market will go up from here, or from here, or from here? So for that what we do is, we click on Fibonacci now there are 2 clicks in Fibonacci.
I did the first click here, now if I move my mouse it’ll come like this, up and down, Ok like this up and down and where I’ll click the 2nd time it’ll stop there So you have to do the first click which is the lowest point, wick or body? Lowest point, Lowest point- body if it’s the body and wick if it’s the wick Here you’ll click it here, the first click and the 2nd click on the top, now wick or body on the top? The top point wick If wick body if body, we’ll see a practical example we’re understanding the theory right now We came here now I’ll pull it straight forwards, if you’ll pull it straight then the market will come till here. Now set this and if your toll looks a bit different then go to settings, how? If you double click it and settings opens, I’ve just- this might be on in yours as well, This might have opened as wel May be 50 things will be on in yours, 1.318 You close all of it, you want to use the retracement tool just keep it like this, Ok, keep them and don’t use anything else Now the most important thing leaves the charts you have to start reading here, here it’s written 0.236 I’m multiplying it by 100, Ok? so can I call it 23.6% Yes, I can so I’ll call this 38.2% I'll call this 50% and this 61.8% this is the 0.6 golden ratio
and this 78.6 and I’ll call this 100% Ok So we just learned how to read the numbers, Now what? so now these are all important levels it could take support from here as well If it’s IT stock or high growth stock it takes support from here it rises from the 38% But maximum stock retraces after getting to 50% it’s an important zone and the deadline is 61.8% this is known as the golden level basically this whole zone is known as the golden zone 50 to 60% one Mostly stocks if they rise from here then it’s sure that this wasn’t a trend change in the market.
The market will take a pullback and make a new high and go up. So I hope you understood the theory till now, if you didn’t let me tell you once again on the opposite example Assume that the market Assume that the market came up, let’s take this Just Dial, it came up and started falling, Now green body let's say, in the next few days whenever it makes a green body, how high will it go? Will it drop from here, or here, or here? How will we find out? We’ll click on the Fibonacci tool and click on its high once, bring it down to the bottom point, brought it here now we’ll extend it forwards. Now you know the most important is the golden zone, Which golden zone? this one is the golden zone, if it crosses this as well- If market come from here So if it makes a strong red candle from here somewhere, then we know we can achieve this target or even lower we can check through price action level, if it'll go dowm more But if it breaks this do we buy? We don’t buy we leave it; we figure that the trend has changed Now if it’ll make another high then this Fibonacci tool is not of use Now see, this Fibonacci tool till when- Now look, till the price the remains in this zone, pivot changes but the Fibonacci doesn’t Are you getting what I’m saying pivot will change always.
Everyday, daily pivots but Fibonacci is the kind of tool which never changes why? Because till the time a high or low is not made, assume a low has formed so will you do the setting? You’ll come here click on this point and after pulling it a little lower you will set it So this is how you reset the Fibonacci, but now let’s do one thing and see practical examples, where it actually came into use Ok? So for you I’ve- It’s my habit whenever I show you something and I make a video for you it is always high quality So took a crypto, a Forex, a NIFTY, a BANKNIFTY, and a stock. I’ll show it to you Where it has already worked, then I’ll give you 3 examples where it could work which you can see after 2-4-5-10 years after this video has been published as well about what happened after that point? I'll tell you everything date, time and all So still before going to a live example again I’ll give you some theory knowledge, Let's say we want to take in JUST DIAL now swing people have a doubt about which swing they have to take. Recent always go with the recent swing here the recent swing, you can see this point? Ok The market started from here and make a new swing Ok we came here, So this Swing is new Just let it make one green candle the market will definitely come till here. If it takes a rejection from here, then it’ll fall from here itself Here if it comes here and here Now, enough with the theory Let’s get into the live examples and let’s start with Ethereum This is Ethereums chart, see the market came and dropped after making a double top and made a green body after it dropped, so I realized that this is my high point and this is my low point correct? I hope you get my point, why is it my high point low point, let me make it in front of you We clicked on this and after coming here I’ll come a little lower come here, it was a little bit wrong Just like...
and like this Ok so let’s delete this one So we got rid of it, Ok? Ok, removed and made another in front of you, let me make it again if you want I’ll come and click on the highest point and click on the lowest point here This is the lowest point, perfect Now see guys, from this to this- Now once the market started going I’m using it for retracement bro I want to know that if Ethereum fell down, how much will you rise before falling again, that is my question. OK? This is a recent chart, 13th May, this is the chart of this month only. Today is 15th May when I am making the video and this is 13th May.
It is making a candle like this on 13th May, 6:30. So, here, I will press the play button. I pressed the play button. Ok it is not giving close on above of this ok Then see, a little body, not a buy signal, red signal. One big engulfing candle is made of red color. See, once again it made a red candle.
See, once again a red candle was made there and took support. Means, what I am trying to say is how is it taking the support from exactly these point? These Fibonacci ratios work so perfectly that, see it took the support from there again. See, this is your sell entry It broke that level. From its golden zone, 61 to 50% was the golden zone. It took the rejection and broke. Here, you have to short.
When you will short here, you will come to know how, put your stop loss, it is an obvious thing to put where? You will keep it above this zone. And, if you shoot here then you will keep it above this zone. You see how your trade works. It will go down definitely and touch this level or it will touch this level. Look at this, Look at this, it made one target for you. So, this is it. This is it. Now you see, it is working in front of you.
So, for now your target has been hit once. If you hold then also the stoploss has not been hit yet. But, here your target has been hit now. This is ETHEREUM, this will go on, we will stop it. Now, let’s come to the Australian Dollar and Canadian Dollar. Here, from this point.
Let me make a fresh one for you. I noted from this point to this point and went ahead. Ok Now, there is no use of it so let's close it. I have come here. Now, I can see the market has gone down, red candle, green candles were made. After that it made a strong red candle. So again, this is my sell entry.
Because it is taking rejection from its 38%. I have told you, the entry signal will always be a big candle. Either green or red. If you see what happens next in the market, you will come to see it is going to take the first target hit and then it is going to breach those levels as well. If you see it, again, it is going up. How will you get to know till where will this go? For that you bring the price action level. Open the daily time frame
or open 4 hour time frame. Bring everything from there, it is going down only. Now, like this Fibonacci works. Look at this So, this is it. Now, when there will be a strong green candle then we can again set the Fibonacci.
So, see this the way Fibonacci helped me from exactly this level. Now, let’s check Nifty’s example. What happened in NIFTY? This is NIFTY, see. Let’s say in Nifty, Low from 15th March, it went, took a support and after taking the support it started a new swing.
I draw it from this point to this point. How much will it fall down before going up? I need to know. So, I drew Fibonacci from this point to this point and now I will play it here. You will see, Look where did it break? It broke a level here. So, where does it take the support from? See, 50%. It made a double bottom at 50%. Now, the double bottom has come at 50%. Strong green candle, we should buy here
and then you will see it is going to touch recent highs and it is going to break those highs as well. It is working in NIFTY as well. So, up till now we were working on the time frame of 1-1 hour. So, this is NIFTY. Now, let’s talk about BANK NIFTY. There is an example of 8th March in BANK NIFTY. It has taken a low of 8th March and 23rd March. We found the high and low. I need to know how much will the BANK NIFTY fall down?
Where should I buy it? Because after a strong up, there is pullback taking place. So, let's play it again. If we play it here, look then it took the support of 38.2% and made a green body. That green body is your buy-signal. It is a powerful green candle and you have to buy there and definitely there is a new high that will be made here Yes, it is going to make a new high.
Mean at least Sorry, I am saying new high. It will give the target of this previous high for sure and you can plan the new high as well. If you will see it, So this is it. This will go on like this. If I increase the speed of it,
the target has hit and we are moving ahead as well. Now, one example I would like to give. Up till now what all we did? CRYPTO, FOREX, NIFTY, BANK NIFTY, STOCK. And, I have changed the time frame for you as well. I have opened the daily time frame. This is a daily time frame,Ok so that I can show you this hand, mouth which is working. It can work on any time frame. but it is a belief of mine that I don’t work on very small time frames
because it seems so to the people that it is working on a smaller time frame because it is working on very small levels but my friend, on those small levels you can get pivots. You can get horizontal levels on smaller time frames. You telling them that they are Fibonacci level, it is making you feel that it is Fibonacci but it is minor support. This is It is written in theory as well, and works better on higher time frames.
So, I see it in a 1 hour time frame at bare minimum. Very rarely I see in 15 minute time frames but that's the least I see it which is 15 minute time frames. Very rarely It is very rare but 1 hour is good, 1 day is also good. So, how is the market? See, the market made a low from here to here and started running.
Now, see, from where did it take the rejection? It is in front of you Ok I have not done replay in this but even if I replay for you all which I have not done. Now, I have to know, I know 61%. Going above this means it is an uptrend. This shoot won’t go.
So, it took the rejection from there. I had to short it there supposedly, I did the short. This is a short at the red candle. My one target, two targets get completed here. It will take a smaller pullback and will go down again. So, this is the recent example of Maruti. Now, we have had 3 examples.
One, two, three, four, five examples. Now, I am showing you such examples which have not happened but if you tell me to spot now then I will spot it now. This is USDJPY. USDJPY and USDCAD USDJPY and USDCAD both I have given in FOREX Analysis. See, listen to one thing, you all see the market analysis of the stock market. Do start watching FOREX analysis,
watch CRYPTO as well. You will get to have greater knowledge of price action. And, price action works great in FOREX. Now, this I have already given. You see, this is my present tense which is there of me, this is 15th, this is 14th May.
Yes, because the market is closed. 14th, today is Sunday. So, it is showing on the 14th because on Saturday it is the time of 1:30 AM at night. Means, it is on Friday, 13th May. So, where has it stopped in the present tense? Where has it made double top? I have given it; I have already given it USDJPY. I had not told Fibonacci; I had made levels. See, there is a 50% level there. Market will fall from here.
Means, what is it showing, my retracement level? It is showing how much above you will go before falling down. So, again, which is given in the FOREX Analysis. It is given in Dollar/YEN and this is USD/CAD. USDCAD is like brother, if you are going up then how much will you fall down.
So, I have given this example as well. It has stopped at 50%. So this is the support zone over here. I have made the support zone that way. Lastly, Bajaj auto. This is the current chart of Bajaj auto where we are watching It fell from here, how much will it go above? It has taken resistance by exact 50%.
Alright, we have also seen Bajaj Auto. So, guys I hope you must have seen that this tool which is there, this is not a god-level tool that will bring your trading to the next level. But, yes, it helps you in retracement by giving you extra added help. Mean, you find price action level and everything, find the movement of the market. So there, can you see it in USD/JPY? That, assume, I will remove everything from the drawing. I have removed the drawing. Can you see that the market went down and came up? Now, from here will it go to its trend? If we directly put Fibonacci here.
So, Fibonacci shows that 50% level is important, my friend If there is a bigger red candle made from here, then we will short and make this our target which is a very good target. It is a target of how many pips? See, if you see then it is a target of 70 pips. So, this is how you can use the knowledge of Fibonacci retracement. And, my personal experience says that this Fibonacci fan and all doesn't work, basically it is not used too much. Means not doing detail analysis like it being a job type. We have to do practical trading. So, the things which you can use easily, focus on that only.
We should not run to learn 50,000 more things. Now, you've learnt one more thing. Now, your technical analysis, what should I say? In your arsenal, in your arsenal of weapons now you have Fibonacci retracement as well I hope you will use this; you will enjoy using this tool. Do a lot of back testing then see. Open 1 hour timeframe and do backtesting first. After doing back testing
you will get to do forward testing and you will get an added help from today onwards. So, it is going to be 1 million. I am not waiting for it to be 1 million, like it will be 1 million and then I will start making videos which will be better for you I have already started it, I firstly want comments about how the video was to you. This was the requirement of you all from a lot of days. How do you feel about this? How did I make you understand? Did you understand? Secondly, do tell me the topics. Which all topics you need for beginners.
Which all topics you need for advance. On which topics do you want me to make the videos? Do comment very gracefully, very professionally and we will talk about it, ok? If you loved this video then do like it. By liking the video it is circulated forward and is useful to many others, ok? And, thank you so much for subscribing and clicking the bell icon. We have almost reached 1 million. Before reaching 1 million I am starting all the video series for all of you, ok? Ok guys, thank you so much. I wish you all the best for your trading career. See you soon in some other videos. And yes, I am planning to start the fundamental series as well. It is a good time of investing
and where am I investing into, I will be making the video on that as well. So, wait for that video where I will tell you that there is one thing by which you can see my portfolio. So, I will share that with you very soon. I am making it in 2-4, 5 days. I am making fundamental and this as well.
And, for business case study as well, I am planning to bring some good topics for you. So, I will be making that as well. Good things are coming up, be excited Booming Bulls family See you soon in some other video. Bye-bye.
2022-05-20 22:49
