Where to Draw Fibonacci?
44sClear, visual explanation of a common trading confusion, appealing to beginners.
▶ Play ClipAI Summary
This video presents a Fibonacci retracement strategy for buying assets at a discount. The presenter explains how to identify the discount zone between the 61.8% and 78.6% retracement levels and how to execute a trade from that zone with defined risk.
Chapters
[00:02]
Drawing the Fibonacci Grid
The Fibonacci grid can be drawn at multiple points on the chart; the presenter demonstrates several placement options before settling on the correct one.
[00:17]
Identifying the Starting Movement
A long decline followed by a reversal marks the first anchor point for the Fibonacci tool.
[00:31]
One Complete Upward Movement
The entire rise from start to finish — including intermediate corrections — is used as the basis for the Fibonacci grid. There is little value without a concrete execution strategy.
[00:46]
The Discount Zone
The most coveted discount zone sits between the 61.8% (618) and 78.6% (786) Fibonacci levels. When price enters this area, it offers the biggest discounts for buyers of the prior growth.
[01:00]
Waiting for Price Entry
Traders should wait for price to enter the discount zone without moving the grid. The grid stays fixed as one upward movement until price moves higher.
[01:16]
Trade Setup and Risk Management
Enter the position from the discount zone (the golden ratio area), place the stop loss below the zone, and set the take profit at a 1:TM ratio.
[01:29]
Execution and Exit
Wait for price to enter the position and lock in the take profit once the target is reached.
The video outlines a simple Fibonacci discount-zone strategy: draw the grid across one upward move, wait for price to retrace into the 61.8–78.6% zone, then enter with a stop loss below the zone and a take profit at a fixed ratio.
Tutorial Checklist
3
00:31
Draw the Fibonacci grid across the entire upward movement from start to finish, including corrections.
Study Flashcards (5)
What are the boundaries of the Fibonacci discount zone?
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What are the boundaries of the Fibonacci discount zone?
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Between the 61.8% (618) and 78.6% (786) Fibonacci levels.
00:46
Where should the stop loss be placed in this strategy?
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Where should the stop loss be placed in this strategy?
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Below the discount zone.
01:16
What movement is used as the basis for drawing the Fibonacci grid?
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What movement is used as the basis for drawing the Fibonacci grid?
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One complete upward movement from start to finish, including intermediate corrections.
00:31
When should the Fibonacci grid be moved or adjusted?
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When should the Fibonacci grid be moved or adjusted?
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It should not be moved until price moves higher; it remains fixed as one upward movement.
01:00
What does the presenter call the discount zone area?
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What does the presenter call the discount zone area?
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The golden ratio.
01:16
💡 Key Takeaways
📊
Fibonacci discount zone
Defines the exact 61.8–78.6% retracement band that offers the biggest buying discounts — the core of the entire strategy.
00:46
🔧
Risk management setup
Stop loss below the zone plus a fixed take-profit ratio gives the trade a clear, repeatable risk-reward structure.
01:16
⚖️
Grid placement principle
The Fibonacci grid must span one complete upward movement to remain valid — a key rule for correct application.
00:31Full Transcript
[00:02] really explains where to draw it. For example, we can pull it here, here, or here. When will this all end? Let's calmly put everything in its place now . Everything here is actually beautiful. We had a long decline and
[00:17] then there was a reversal. This is the first point where we put our Fibonacci. Then all of this is where we put our Fibonacci. Then all of this is one upward movement for us. Yes, there were corrections here, but then the price grew again, another correction, then
[00:31] grew again. Accordingly, this entire movement from start to finish is suitable for us to draw a Fibonacci grid. But there is little point in this if there is no specific strategy for implementation. Now we will also close this issue. In
[00:46] Fibonacci we have the most coveted discount zone. This is between level 618 and 786. When the price gets here, [music] these will be the biggest discounts for all those
[01:00] who bought this growth. Next [music] we just wait until the price enters this zone. There is no need to move the Fibonacci grid anywhere until the price goes higher. All this remains for us as one upward movement, from which we expect a
[01:16] movement, from which we expect a correction. Next we set the position from this zone. You can call it the golden ratio. We hide the stop loss under this zone. Take profit pull 1: tm. We wait until the price [music] takes us into a
[01:29] until the price [music] takes us into a position and fix the take profit. Just subscribe. We will learn trading and make money.
