How to Draw Fibs #technicalanalysis #shorts

10 Apr 2023 · 1 min

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0:39

In this short instructional video, the presenter explains the proper way to draw Fibonacci retracement levels on a price chart. The key steps are: identify the most extreme swing points (the highest high and lowest low within the relevant move), then draw the Fibonacci tool between those points. For short‑trade setups, draw the fib from the swing high down to the swing low (top‑to‑bottom); for long‑trade setups, draw it from the swing low up to the swing high (bottom‑to‑top). He notes that while additional fibs can be drawn within a swing, the primary focus is on the main swing’s high and low. The overall message is that applying fibs is straightforward once the correct swing points and direction are chosen.

Chapters

And for those people who are wondering how I'm drawing these fibs, basically you just wanna draw it at the swing points, the most extreme points. So that's going to be like on the chart yesterday, it was gonna be from this point here to this point here. Notice how these 2 points, you can just draw a swing from top to bottom and that would be the swing. Notice how this and this wouldn't be the swing point, but within the context of the swing, you can draw another fib as well, but that is besides the point. So I drew the fib from this high to this low. And for your information, if you're wondering if you should be drawing your fibs from top to bottom or bottom to top, looking for shorts, then you draw from top to bottom. If you're looking for longs, then you draw from bottom to top. It's basically as simple as that.