#TradingLessons FIBONACCI good explanation. Thank you @The Crypto Anatomy

I'VE BEEN USING FIBONACCI IN THIS WAY TO GET MAX RETURNS & MINIMISE LOSSES.

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You must have heard about Fibonacci Retracement, a tool used to identify trends in the market. Be it for long or short, this tool has been the favourite of many traders for quite a long period. But only a few know how to use it correctly.

So, I'm going to share this little secret with you that many influencers or gurus charge heavily in their online courses. Here's the real deal.

📊 Go to trading view and select "Indicators" from the top of the menu. Then search for the term Fibonacci and as you'll get many options in results, select "Auto Fib Retracement" and it will be auto applied in the charts. No need to draw manual lines which was the case earlier (e.g 2-3 years back).

Now, to use fib we usually spot the market swings in a particular time frame(15m, 30m, 1H, 4H, 1D are the best suited). If the trend is bullish, then we draw the line connecting the bottom of the swing to the top of the swing. The reverse stands for a bearish trend, connecting the top to the bottom.

Here, I've selected the 1H chart of Sol & applied it. With default settings it'll appear something like that (image1), lots of coloured rectangles. But this is old school. And here's the real deal. Now go to the settings of the tool and deselect all the options except 0.5 & 0.618.

Now change the values of these metrics. Change 0.5 to 0.55 & 0.618 to 0.66. Now your fib tool looks something like this (image 2). Never trade when the price is in that range, this is where you'll be trapped. When the price goes above that range it's bullish and the opposite is true when it trades below that range.

Backtest it with price action, the S/R levels will give more clear direction. This is where traders get the max clarity about the market direction. I wouldn't say that you should rely entirely on this, everyone has their own style of trading but this will definitely create an impact for every trading style or setup.

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