Custom Fibonacci levels for better reversals
36sReveals a specific, actionable tweak to a popular trading tool that promises higher-probability reversals, sparking curiosity and immediate trial.
▶ Play ClipAI Summary
This video presents a Fibonacci retracement trading strategy that combines a customized Fibonacci tool with fair value gaps to identify high-probability reversal zones in an uptrend. The creator demonstrates how to set up the Fibonacci levels, mark the golden zone, and execute a trade with specific entry, take profit, and stop loss placements.
Chapters
[00:02]
Custom Fibonacci Settings
Change Fibonacci tool values to 0, 0.706, 0.618, 1, and 0.79 to create three main levels that form the 'golden zone' where price has the highest probability to reverse.
[00:28]
Identifying the Golden Zone
Find an uptrend and mark from the low to the high of the trend. This creates the golden zone where price is most likely to reverse.
[00:41]
Pairing with Fair Value Gap
Enhance the strategy by pairing the golden zone with a bullish fair value gap. The best setups occur when the fair value gap aligns exactly within the golden zone.
[00:54]
Trade Execution
Wait for price to enter the golden zone and the fair value gap, then enter the trade. Set take profit at the highs and stop loss below the golden zone.
The strategy combines a customized Fibonacci retracement with fair value gaps to define a high-probability reversal zone, offering a clear entry, take profit, and stop loss framework for trading uptrends.
Tutorial Checklist
2
00:28
Identify an uptrend and mark from the low to the high of the trend to create the golden zone.
Study Flashcards (5)
What Fibonacci values are used to create the golden zone?
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What Fibonacci values are used to create the golden zone?
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0, 0.706, 0.618, 1, and 0.79
00:02
What is the 'golden zone' in this strategy?
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What is the 'golden zone' in this strategy?
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The area where price has the highest probability to reverse, defined by the custom Fibonacci levels.
00:14
How do you mark the golden zone on a chart?
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How do you mark the golden zone on a chart?
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Find an uptrend and mark from the low to the high of the uptrend.
00:28
What additional tool is paired with the golden zone to improve the edge?
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What additional tool is paired with the golden zone to improve the edge?
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A fair value gap, specifically a bullish fair value gap that aligns within the golden zone.
00:41
Where are the take profit and stop loss placed?
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Where are the take profit and stop loss placed?
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Take profit at the highs, stop loss below the golden zone.
00:54
💡 Key Takeaways
🔧
Custom Fibonacci Settings
Provides a specific, non-standard Fibonacci configuration that traders can immediately apply.
00:02
📊
Definition of Golden Zone
Clarifies a key concept in Fibonacci trading, making the strategy accessible to beginners.
00:14
⚖️
Fair Value Gap Confluence
Demonstrates how combining two technical tools can increase the probability of a successful trade.
00:41Full Transcript
[00:02] price is going to reverse and it's pretty damn good. First, grab your Fibonacci tool. Go to the settings. Change the values to 0, 0.706, 0.618, 1,
[00:14] and 0.79. This will give you three main levels that look like this. These levels are what's called the golden zone or where price has the highest probability to reverse. but we're going to add a little bit more to it to make
[00:28] our edge even greater. First, find an uptrend. Mark from the low of the uptrend to the high of the uptrend. Once this is done, we now have our golden zone where price is most likely to reverse. But we can make this trade even
[00:41] better. What I like to do is pair this with a fair value gap. So, here we have a bullish fair value gap, but not only that, it's paired exactly within our golden zone. Wait for price to come to our golden zone. and within the fair
[00:54] value gap. Enter. Set her take profit at the highs. Set her stop loss below the the highs. Set her stop loss below the golden zone.
