What are Fibonacci Retracements
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- Опубліковано 6 лют 2025
- As per your requests David will take us through a review of Fibonacci Retracements - one of the most common and trusted indicators used by Forex and stock traders alike. Based on the work of an 11th century mathematician and found in many places in nature, this method has a loyal and numerous following.
But David gives us both points of view, as markets aren't always logical and rational. Fibonacci can be great but there are also risks when using it and you can see them here in real market situations.
At Trading 212 we provide an execution only service. This video should not be construed as investment advice. Investments can fall and rise. Capital at risk. CFDs are higher risk because of leverage.
How ironical! You may not be a fan of Fibonacci Retracements, but you explained it better than most people.
Being well informed on a particular topic allows you to take a better stance for or against it!
Truly
Fibo has already become a self-fulfilling strategy
Well said.... I am fully agreed
Great job
Fibonacci theory has just become more clearer to me in under 10 minutes due to your great video than it has in 10 months from other sources. I discovered your platform and videos about a week ago and have watched lesson after lesson. You have a great way of teaching. Thank you.
I'm having a hard time with this indicator. I appreciate the math and theory that went into it....but if you throw enough lines on your chart, you can always make an argument for support and resistance in any particular area.
Can someone elaborate on this point? I feel the same way.
@@jonstnr I understand exactly. it may be subjective, just remember that once the candle hit the target area, you may want to add more indicators that will agree with your analysis as well.
Exactly
Pretty much backs up why he doesn't think they work
You can pick one resistance/support level and use it for all you trades, test to see weather you have an edge
From knowing nothing beyond it being TA, this short explanation was direct and to the point, and shown excellently. Very simple to understand the way it is laid out etc.
What id love to see now is how the fib lines are actually used by traders who really focus on it. I kno you said don’t trade based off fib but you explain everything very succinctly. Awesome
Most of anything, David's humility is very evident in the manner he explains. Baises seem to be out. Great job David for us to easily understand Fibonacci Retracements.
"Hopefully you're still awake after that..." haha funny guy.
I love the way you explained this! The history along with how the percentages are calculated are really helpful!
Never get bored of watching the videos you do david , you explain everything so clearly and in detail , I dont know of anyone that can do it better than you
You’re a good teacher.
It’s not by muscle or shouting it’s by intellect!
you are a legend and this channel is the best to learn trading
Fibs aren't meant to be used alone, but can be used as a confirmation of other technical analysis, or to predict profit targets (again as a confirmation of predicted price action). As with anything, they don't work all the time, but as a tool, they can be quite effective. After all, the Gartley pattern, Bat pattern, Cypher pattern are all fib based. And they can be very profitable patterns (if backtested properly).
My best analytic tool is my intuition.
Dennis H
No indicators should be used by there selves, you should use multiple
@@aamirbasir5464 exactly
"but, what do i know." 😅
Look at thia guy. Very humble in knowledge
I love davids style of teaching. Very informed and honest about his opinion, yet regardless he still provides a wonderfully clear explanation of the subject. Well done, but one thing that would be nice, but could possibly be out of the scope of what these videos ultimately aim to achieve, would be to mention not only that you personally are not a fan of fibonacci but to check out ___ form of analysis that you are a fan of.
Once again, great video!
The best honest trader expert on youtube.. thank you as always
I agree with someone else here-for an indicator that you really don't like, you explained it better than most of the people I've watched before.
Finally I understand how Fibonacci retracements work.
Yup. This video is excellently detailed,
wow, the most detailed theoretical explanation of where fibb retracement came from
Very clear, thank you!!
First time I ran across your videos, David...EXCELLENT video! Very well explained in layman's terms. Congratulations for not confusing the crap out of me.
Love this guy videos he is the best
True, love him too. thanks for sharing great analysis. Cheers
100% definitely the best, just excellent instruction without the usual shilling that goes with.
true!
Lot of folk jumping in and saying he's not applying it properly- but none has offered an axplanation as to how exactly it should be used. Easy to neg everything- to put up or shut up would be fair I think.
Your comment is just as pointless as the neg comments then.
One of the best explicit explanations for F.R., cheers mate!!!
Most simple and easiest way to explain fib. Good job
Good job! This is by far the best explanation on youtube.
Short, sweet and to the point. Foundation has been built, next is to conquer, crypto. Thank you for the amazing tutorial!
Man this guy just makes it so simple to understand 🤯
I appreciate the evenhanded treatment of it. A skeptic could pretty easily say that if you draw 4 lines on a graph, give each one a certain margin of error, and always have a plan B prediction, it would be hard not to get somewhere in the ballpark, but all of those contingencies of "well if it breaks this level just go lower" is about the same kind of money pit as saying you should just double your bet every time you lose at blackjack.
d best David, we see the sincerity you have in your heart to teach us more. God bless.
I tried watching till the end but I lost the will to live.Trade 212 is a great platform massive learning curve for me really getting hooked and enjoying losing my money lol
Anyone who says Fibonacci retracements don't work doesn't know how to use them. It's like the people who say short term investing doesn't work. My reaction when he said that was probably the same as his when people find out he's a trader and tell him how the financial markets are a scam and no one can really day trade successfully: "Whatever bro. It's making ME money."
He said it's not for him but he explained it well. Mostly because of the basis of retracements, how it's most likely just some absurd self-fulfilling prophecy.
Love it. You are the best David. I like at the begging when you nicely said you are not a fan of Fibonacci but your explanations were terrific.
Although you don't like the Fib' tool, you give a great explanation of how to use it. Have a cracking Trading week ahead! God bless. M
Never understood Fibonacci better than this, Thank you 🙌
"hopefully your still awake"...( i literally yawned so hard) HAHAHAHA
Thank you... Well explained....Subscribed.
Thanks, Raghavendra. Stay tuned for more original content by Trading 212.
Thanks for the video, I understood it better with this explanation 😊
I appreciate how clear your explanation is. Thank you
Immediately you said it doesn't work I closed the video!😂😂 But I still dropped a like!👍👍
"hopefully you're still awake after that explanation", I laughed.
the best place to understand trading. Thank you sir.
Tradiingview added the Fib indicator in the last couple of weeks that auto-draws-but just traditional.
In my opinion, I think one major reason these work-on the entries especially,-is that 1000s+ of traders are entering right at or very close to the same levels all at once because they are watching the same thing. It's similar to a group of "whales" deciding when to get into a Crypto trade just to "pump" the trade. However, in their case they have a predetermined sell point which really hurts people buying in and not aware of it or when to exit.
.
It's like a self-fulfilling prophecy.
Awesome explanation David.
Thanks for the great explanation!
David would you mind to tell what is your favorite way instead fib? hope to find out .
Thank you
very simple and nice video. Thanks Sir
Wow this is mind blowing explanation, well done Dave
Thank you! Very clear explanation.
Nice analysis. I will take the time to view your other videos. Thanks for this, really helpful.
Awesome explanation...very clear
Very good explanation 👍👏👏
Very good explanation. Easy to understand.
What indicators do you like or use bud your obviously a great trader so we would love your recommendations. This would be more valuable to us I think.cheers for your great vids
Can you make a video on pull back trading strategy?
I feel like the only reason this would work is if many other traders were using it too, basically just deciding it should stop at that hidden support because of this “magical” ratio.
Good Explanation on your video sir! Great Job!
Best explenation i have found on the web
Great video. helped a lot understanding Fibonacci Retracements. Thanks a lot man.
That explains the possible utility for the 50% or 61% retracement levels. What is the utility of other levels then? Why not just providing those two levels in the graph?
Does this guy still do videos? just finding him and so far i love it
Great videos - and really good to hear an honest opinion that this isn't the best indicator/tool and I agree its not for me
What program are you using in this video and are there any programs you’re currently using you’d recommend?
Hello David,
I have watched almost all your video series. you are explaining the concepts very clearly. that's really helping me to understand the market better. could you please make a video about the Market depth and how it will affect the price action.
Thanks alot
Love your channel & honesty 👍🏼
Hello and thank you very much for the video.
In 5:40, you stretch a Fibonacci line from about 1120 to the high.
I would love to know why you are not stretching the Fibonacci from the last low point that was priced around 1190 ?
it will help me a lot, thanks
I really enjoyed this video...even though you don't like them would you consider a video where you could show some examples of how you might use Fibonnaci in conjunction with other indicators to make more informed trading choices?
You don't need any other indicators, use Fibonacci incorporated with support and resistance
Thank you, a well-explained video. Could you please explain the difference between volume and tick volume and how to use the tick volume? I'm a bit confused to see a company trading over 1M shares a day while the tick volume reads only a few thousand ticks. Successful trading!
Hi, Jo. Your suggestion is appreciated. Thanks for posting it.
I am a beginner trader and like Fibonacci because I think so many people believe in it that it affects the Fibonacci trading to become true. Am I making sense?
Oh yes, and thanks for your videos, they are gems and you make it so easy to understand.
yep it becomes a self-fulfilling prophecy. the same thing is true for support and resistance levels
Hi thanks for the video. Can you please make a video about the different time trading charts ( 5,10mins, 1 day and so on charts). What is the connection between them and when to use which time chart? Will be helpful for a new trader like myself! Many thanks in advance
I love the way you explain things
Thank you for the video. I thought this was a great overview of the fib. Cheers
How far back does one go to look for the starting point of the upward or downward trend movement? Surely if there's a gap in price due to a weekend or a breakout in price due to news announcement then it would adversely effect the Fibonacci retracement... Somebody please help me understand, I can't seem to wrap my head around this concept.
Hello Sir. Thanks a lot for this information on Fibonacci. Question. What is the ideal timeframe when trading fibonacci in FOREX? Would it be in minutes? hours? days? for me to get an accurate result. Thanks in advance. Keep it up.
Hi there, depends on your trading strategy, style, goals and preferences. Typically, it is believed that bigger time frames on the chart provide more reliable trading signals.
I'll take note of this Sir. Thanks a lot. :)
love your clarity David...thank you
Wow... best explanation I’ve heard so far
I enjoyed watching your facial expression 😆... nice video!
Great video and very well explained 👍
Your use of fibonacci levels isnt wrong, but that's not how algo use fibs to trade. They're doing extensions from dominate pivots. Understanding that might change your opinion of the validity of fibonacci in trading. Good video
Fib is my favorite tool. I use it in conjunction with Ichimoku cloud and awesome oscillator.
Very good video, well explained and easy to follow.
Your kind words are appreciated. Subscribe to the channel and stick around for more.
Thank you very much for such a great sharing session .... you are a great master ..... expecting much more from you ... thank you once again... god bless you
Thanks for this.. Please can you cover how to predict the speed of the retracement. That is, how to predict how fast a trend would be...
Hi David,
love the videos. Always very informative. I have watched a number of your videos and see that you are 'not a fan' of some of these indicators. What indicators are you a fan of. :-)
The ones he hasn't said that to xD
So which trading platform are you using
I'm put off from that he doesn't like them, can someone say if they are good to use? I'm a beginner and thought this would be a strategy I use but idk now
Could you discuss extensions
Is there any video on Gann Fan /Lines.
How to draw them and how to use them would be useful.
Thanks
I would use it for lower time frames and liquid instruments like forex, but for the big picture support, resistance, moving average and trends are more than enough
Can it be used for intraday trading?
Thank you for this! It would be great to see similar such visual explantions that tie other indicators to stock movements.
Hi, Manasi. Your suggestion has been noted. New videos are published on a weekly basis, so subscribe to the channel and watch this space.
Could u tell me which are best tools/ indicators to be used to trade crypto currencies
Great explanation. Thank you
Simply thank you
When it comes to Fibonacci in the markets you have absolutely NO idea what you are talking about at all whatsoever but you are not alone.
David, im disappointed to hear your not a fan of Fibonacci, I use Fibonacci on every single trade, however I don't use it blindly, I use Fibonacci incorporated with support and resistance and it is very powerful, I have huge success. I don't use it how you did on your example but I could see my set up on your chart and it would of worked perfectly. the huge benefit of my strategy is I can keep my SL very tight, literally a few pips, which enables me to get in at a decent lot size and also compound it. non of which I could do without the golden levels of Fibonacci.
Would u say it's the best indicator
Hi, I got a question if u don't mind helping me. I wanna ask whether the patterns where there's about to be price retracements and reversals are the same or not? (i.e : pin bar, engulfments, hammer etc..)
Appreciate your help, thanks very much !
Hi Dennis. I think there are slight differences in how they look but the psychology underpinning them is broadly the same. It's all about a current trend getting to an exhaustion stage. They can offer good potential in terms of risk versus reward but as ever none of this stuff works all the time so it's important to have a stop loss or something if that previous trend continues.
It s good reference for higher put lower call, but do remember for reference only
This was a great explanation
Well explained sir. Viewer from Philippines
So basically it's a way of seeing that the price does up, down, and up again? It's just a giant, useless, confirmation bias indicator. if it "breaks below" a percentage level of support, then bounces back up (because that's what prices do), then the fib retracement support worked? This indicator would only work if literally every player in the market went by its principle.
How come you see a jump or drop in price after a big news headline? If the price jumped after a big pice of news and it just to happened to be at a fib retracement level, then fib retracement correctly predicted that?
Doesn't anyone see that it is in our psychology to confirm and recognize patterns, even if they don't exist?
Fib is a technical analysis tool. News is a fundamental analysis tool. Different things so don't conflate the two.
Pls which trading software is he using