In this instructional video, Vladimir Ribakov of Home Trader Club walks viewers through his favorite method for trading with Fibonacci extensions on the cTrader platform. He begins by sharing his professional background in private funds and options trading, establishing credibility for his approach. Ribakov explains the three key Fibonacci extension levels—61.8%, 100%, and 161.8%—and why the golden ratios (61.8 and 161.8) are statistically significant. The core of the strategy combines these levels with MACD divergence (bullish for buys, bearish for sells) and a multi‑timeframe wave analysis (4‑hour and 1‑hour charts). He provides step‑by‑step procedures for both bullish and bearish setups, including how to draw the extension, identify wave structures, confirm divergence, and validate the signal on a lower timeframe. Risk management is emphasized: entry near the 61.8% zone, stop‑loss below the recent low/high, and profit target around the 38.2% retracement, yielding favorable risk‑reward ratios. Ribakov also discusses situations where the initial risk‑reward is insufficient and advises waiting for a pull‑back to improve the ratio. Throughout, he promotes related cTrader tutorials, the Home Trader Club community, and encourages viewers to join for deeper cycle‑based, multi‑timeframe trading education.
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What's up guys, Vladimir here from Home Trader Club, and in this video I would like to share with you my favorite, absolutely favorite way to trade with Fibonacci extension. As you know, Fibonacci numbers, probably one of the best, maybe even the best according to many, uh, technical tools based on numbers, purely numbers, a variable for us traders. And I would say maybe even the most popular among traders. It is used in various ways. There are so many strategies published online, how to use that, how to do that, how to trade retracement, how to trade extension, and so on and so on and so on. But in this video, I want to share with you the one I love to use the most, and I would like to explain why. So let's begin. Before the charts, this video and the examples you would see will be presented on the cTrader platform. A while ago, I created a dedicated playlist about the cTrader platform, how to use the platform, and many different different trading tips, including strategies and trading methods on how to do that on cTrader platform. Make sure you watch this playlist in case you still did not and learn some really, really, really powerful tricks, strategies, techniques, methods that will help you in your trading. Why specifically in cTrader? I can talk about it an hour. Here is the list of the most important features cTrader has that other platforms do not have. And that's why cTrader platform slowly becoming superior and to be ranked on the very top of this industry. So I would present a bullish idea and a bearish idea. But first of all, how do we actually work and where it all came from? So I was working for a private fund, for those of you who don't know. And here is the, by the way, a video. About me, about my history. And if you still didn't watch that, make sure you do watch that. Very much recommended so you understand a little bit more who I am, what do I do, and what is in my past. I was working for brokers. I was working for private funds, Nostro company. We were trading options. And part of the technical tricks, it's not only technical tricks, of course, it's a lot of mathematical traps that you have to be able to spot there. Uh, but the technical part was relying on specific levels. Nobody back then taught me about Fibonacci and everything. They just have their ways to identify levels and the zones. But I was never kind of a person who just takes things as they are. I always love to break it down and try to figure out what's going on behind. And what I found that the specific level when, let's say, expirations of big options and the way that the money simply shifts from hands to hands, the way that money flows and moves from hands to hands, happened to be around specific levels. And time after time after time after time, it happened to be around key Fibonacci levels. And this is exactly what I will show you in this video. The chances are that if specific conditions happen on a specific Fibonacci zone, right, with other technical setups, again, which I will show, that your chances to catch out this flow of money, which is expected to move to a specific direction, oh, increased. And that's the secret. No, it's not a secret. That's a powerful weapon that you can have in your hand. And very important thing here, this is one of my leading strategies that I share all, well, not all, but most of my trading ideas in Home Trader Club based on cycle, especially with multi-timeframe combination. So if you want to learn much more and you want to enjoy all the trading opportunities as we spot them, Make sure to check us at Home Trader Club, and you are very welcome to join us. So I will go blank screen to explain the logic about that, and then we will see examples. The idea of Fibonacci extension is that you have a leg up, wave up, you have a pullback, and then the second leg builds up. There are 3 main levels that you need to know. 61.8 Fibonacci extension, which means If this is A, this is B, and this is leg AB, and this is C and D, that means the CD is 61.8% from AB. As simple as that. Which means if this one is 100 pips, then this is going to be about 61.8 pips. That's what percentage means. Okay? Now, if the next key level is 100%, which means CD is about equal to AB. And the final level you need to know is 161.8%, which means if this one is 100 pips, this is going to be 161.8 pips. That's the magical part here. The second important thing you need to know Is that 61 and 161 are the golden ratios of Fibonacci, which means higher probability to spot something golden. So the way I love to work with that is when that— I will be showing examples of 61.8 simply because it's very, very, very, very common, but The way I love to see that forming is that the second leg is slower than the first one. If the momentum here is strong and fast, this one was developing slower with a, let's say, more flatter angle. Okay. And what we will be looking at is MACD divergence. So I would be comparing Higher highs on the chart versus lower highs on the MACD to spot a bearish divergence. And then around this zone, it would be giving us absolutely phenomenal opportunities to trade to the sell. Okay, what do we do if it is for the buy? So once again, I would be presenting the 61.8. Level simply because it's the most popular one. And what we would want to see here is bullish divergence on the MACD. While the market would be making lower lows, MACD moving average would be making higher lows, and that's what we want. And then around this area, we will spot the buy opportunities. So let's go back to the charts and I will show you the, um, the whole thing here. So here is an example on the euro dollar, and here is what you need to do. So first of all, how do you draw Fibonacci extension on the CTrader? You go to here and you can see Fibonacci expansion here. Extension, expansion, choose what you call it. The idea here is the first leg is expanded, okay, and becomes the second leg. So if we go and we draw from the beginning To the end of the first leg, then to the end of the correction. What you will see that the the way it works here, we will get this is the beginning of the leg, end of the leg, end of the correction, and here are the levels of the Fibonacci expansion. Okay, so you can see that the market comes to around the 61.8 Fibonacci here, but the main of course as it develops, I don't know where it's gonna hit, right? But Look what starts to develop here. The market is making the lower lows and the MACD moving averages makes higher lows. If you are not sure, once again, where to find all the indicators and all that, make sure you watch the playlist I was talking about before, a dedicated playlist on my channel talking about all the things you need to know about the cTrader platform. But here under the indicator section, You would be able to find all the indicators of your choice. Okay? Just make sure, write down the indicator of your interest and you would find it there. So, few key moments here before we continue. Each leg has to have waves. Okay? Which means I want to see that. I want to see some sequence. Of lower highs, lower lows. Very, very, very important. Here is the next one of the second. So that becomes the first big leg correction, second big leg. And the idea here is that each of these legs has its own waves on them. But you can break down by connecting sequence of highs and lows to the same direction. That's very, very, very important. Okay. Then you want to compare the lows because this is a 2 waves down. We are looking to buy from the bottom. The money flow expected to change hands and go up. So what we will want to see here is a bullish divergence, lower lows on the chart, higher lows on the moving average of the MACD. And that happens to be around the 61.8 percentage of the Fibonacci extension. Now, very important thing. It could be missing a few points. It could glitch slightly below. It's absolutely fine because the market is never Mr. Perfect. It would not stop right on the spot of 61.8. And the next thing you would want to do is actually Let's put them vertical line here. I want to show you what do we do next. Now let's switch to the one-hour chart. We go to the lower time frame, and on the lower time frame, what we will want to see is that the price flips from sequence of lower highs, lower lows to higher highs, higher lows. And as soon as that managed to break that area, we expect to see the correction taking place and many times even trend change. And here is the sequence that I was talking about, right? We have the sequence of lower highs, lower lows here, and then boom, break to the upside. Very important. You can see that as the market was making lower lows, in that case, some sort of a wedge even, there was a bullish divergence. While the market makes lower lows, MACD makes higher lows. Bullish divergence, break above this high is a great indication that we are very likely to make the rally. And the good part, and one of the reasons why I love that, is if you buy here with a protection below the low, let's talk about the target so you would see where it— how do we actually work with that. So remember, this was our entry here around this area. The targets, you can of course work with the next support and resistances, supply levels. You can work with the falling trend lines. Everything is fine. But what I love to do is to plot Fibonacci, regular Fibonacci retracement in that case, on the whole thing, both legs, and head towards the 38.2. Many times it would be around supply and resistances, but just to give you an idea. So once again, if this was our entry, And this is the protection. Around the 38.2 is our target. This is amazing risk reward in the majority of cases. And this is another reason why I love this one so much. Not just it's super accurate and delivers amazing percentage of accuracy, of success rate. This one is actually— Also providing great risk rewards in most cases. So that was an example for the buy. How do we work with that? Once again, 2 big waves. The second one ends on 61.8 Fibonacci. You plot Fibonacci extension once again from here. So Fibonacci expansion, beginning of the leg, end of the leg, and End of the correction. Okay, then the next important— this was step one, right? Measure the legs. The next important thing there, each leg has its own waves inside, right? Same or lower time frame. And final step, there is a divergence between the 2 major lows of the legs we mentioned. One 2. Okay, lower loss on the chart, higher loss on the MACD. Next step, final step, you drop to the lower timeframe, you confirm a bullish divergence there as well, as we saw before. And as soon as it breaks the high and close above, that gives you the green light to look for the buys and aim to the 38.2 Fibonacci. And you can see the risk versus the reward, the numbers would be in most of the cases very big in your favor. And now let's take a look on the example for the sell. The idea is absolutely the same. We measure 2 major legs that go in the bullish direction. So for example, we go to Fibonacci expansion. Beginning of the leg, end of the leg, end of the correction, and here we are. So why specifically did I start from here? Simply because there was a flow of, or sequence of, lower highs, lower lows before where it was broken afterward. So this uptrend started from here. That's why I started from this very point. Okay. Why specifically did I end here? Because once again, it was making Let me show you here. It was making the waves here. Then it made two waves down, which means for me it's valid correction. And then one, two, three again, which means this is the logical way to plot the Fibonacci extension. And once again. Beginning of the leg, end of the leg, end of the correction, and then of course you will get the Fibonacci. Once again, pay attention that it would not be perfect. It could glitch above 61.8 slightly and it's absolutely fine. The main thing you want to pay attention to is, first of all, there is a sequence of higher highs, higher lows on each of the legs. 1, 2, 3 in each of the legs. One of the legs could have 2 waves and not 3, that's fine. Between the main peaks, you would want to see higher highs on the chart, lower highs on the MACD moving averages. Here, here, and here, and here. That would make it a bearish divergence. And at that point, what you would want to see is the reversal signs. So in that case, We can go to the lower timeframe, of course, but also look what happens here at that, at the peak. A massive bearish engulfing. As the engulfing kicks in, look what happens with the moving average of the MACD. They cross down. Fantastic signal. You can go to lower timeframe, but in that case, you don't even need it because you got the verification right on the same timeframe. Huge engulfing on the top to clean the 61.8 Fibonacci to complete a bearish divergence. And when we go to the 1-hour chart, here is what we see in that case. Take a look. This is where the low starts from, right? Low, high, low, high, low, high. Look in between these highs. There is a bearish divergence kick in here on a moving average of the MACD. We create a fake high. We create, if we connect the peaks, right? Look at that. It's called a false breakout, right? Of the resistance line. Peak, peak, false breakout. And that happens to create also major engulfing in the top here, and which should then turn to be the 4-hour chart. This is absolutely phenomenal sign. And then as soon as we got the break below the low, that gives us the green light to look for the sells. Now, you remember when we discussed on the previous example, right? We do the Fibonacci retracement and we are aiming to the 38.2 Fibonacci. Now, this is a perfect example to show That when this low is breaking, right? When the market flips, there is no good risk reward here to the 38.2. Because if that's the place you sell and that's the place above the peak that you put stop loss, there is no way to get a good risk reward. So what do we do in that case? We are looking for the price to retrace. As soon as it retraces, look what happens now. This is the stop loss. This is the profit. And now you have about 1 to 1.5 risk reward ratio. And that's what you do. And that's why I show this example so you understand that not every trade gonna bring a massive risk rewards. Sometimes you would need to wait for the numbers to improve for you. So if you don't have the good risk reward on the trigger when the price lips and make lower lows, wait for the price to pull back to the level where you will get a positive risk reward. You have to make the numbers work for you. And if you can't make it happen, then simply don't trade it. That's pretty much it. That's once again, there are tons of reasons why this is one of my favorite strategies. And I wanted to give you a few here and show you how it's implemented. This is one of my favorite ways to trade, especially with the 4-hour and daily charts. That's one of my strategies to go. And that's how I spot many of the trading opportunities in Home Trader Club. And if you want to learn all of that, all of these cycles, divergences, and multi-timeframe combination, I invite you to our trading family, the Home Trader Club. The link is below this video in the description. Thanks for watching. If you have any questions, don't hesitate to ask in the comments. Or email us to support@hometraderclub.com. And thanks for watching. I hope you find value in this one. If you did, please don't forget to hit the like button and to subscribe to our channel if you are new to this channel. Thanks for your time. Best to you and yours, and I'll see you soon with more. I wish you good trading. Bye for now. Bye.
