š Fibonacci Trading Strategy You MUST Know | including secrets NO ONE is talking about š¤«

Vladimir Ribakov shows how most traders misuse Fibonacci tools and walks through the correct method: identify wave structures, plot retracements at supply/demand zones, use extensions for targets, and pair everything with divergences on higher timeframes. He demonstrates on a live EUR/USD trade with entry, stops, and risk-reward calculations.
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Hello traders, Vladimir here from Home Trader Club, and in this video I would like to talk about the Fibonacci, one of the most powerful technical tools which is misused by so many traders because of wrong, absolutely wrong information people Find somewhere online. So in this video, I want to break down the steps you need to do when you use Fibonacci, how to use that properly, and also a strategy that will help you find better setups and mainly better risk-reward ratio. So before we begin, I would like to take the opportunity and to say big thanks and thumbs up to Eightka Broker. For supporting our community. To enjoy all the offers we have with 8K Broker, including the access to Home Trader Club, all the trading courses, the trading strategies, the indicators from the marketplace, private session, and more, please follow the link below this video in the description. So first of all, a little background about the Fibonacci sequence. I am sure you know what it is, but just in case you are not familiar what it is, the sequence of Fibonacci is a very simple logic when every 2 following numbers besides the first 2 basically would be the value of the previous 2 numbers. So 2 is the value of 1+ 1, 3 is the value of 1+ 2, 5 is the value of 2+ 3, 8 is 3+ 5, and so on and so on. This creates magical numbers here which give the from my point of view, the golden information that people don't pay attention to. And here is what I'm talking about. If you take the numbers, right, their order, as you can see here, and what you do is divide the number by the one beforeā for example, 5 divided by 3 will give you the ratio Of 1.6 and something. 8 divided by 5, 13 divided by 8, 21 divided by 13, and so on and so on and so on. Thisā pay attention to thisā besides the first numbers, look what happens here. Golden ratio. Absolutely golden ratio. And that means That if you try to follow the logic, number plus number give you some outcome, the division between them puts you back, then another, uh, addition of the next following number give you another high, division between them, uh, drops it back, and so on and so on. So this sequence of numbers always follow it by the same ratios. How does that help us in trading? So I'll go blank screen for a moment. What most traders do is they see some information somewhere online and just plotting Fibonacci on random waves, if it's one candle or just one wave, without checking their, the trend, without checking that there is a sequence of highs and lows without making sure it connects to given trends and doing a mistake. So the way that you need to use Fibonacci is exactly based on what the numbers I just showed you before represent, right? Coupleā if you add numbers, you like, for example, 2+ 3 is 5. Five divided by three, boom, right? Pullback by one point six and something, right? Then three plus five is eight. Eight divided by five, right? Five plus eight. Sorry. Then then thirteen divided by eight, right? Thirteen plus eight, twenty-one. Twenty-one divided by three, and so on and so on. So the numbers always give you up. Pullback up, pullback up. This is essential if you want to follow valuable, um, values of real numbers. You need to make sure that you have this logic between the moves on the chart. So for example, when you will want to plot Fibonacci, you need established waves, waves that create a sequence of low, high, low, high, low, high. And the sequence of high, low, low, high is created swing points, right? When you have sequence of candles that make higher highs, higher lows, then sequence of candles that make lower highs, lower lows, sequence of candles that make new high, and so on. And what I see from traders, what they do is they measure Fibonacci On such waves, they say, "Ooh, that's a Fibonacci on one candle," or here, "Oh, that's a big candle. Let's plot Fibonacci here," or here, or here, and they do it absolutely wrong. One candle reaction or just one straight wave without breaking it down to waves. If there are no waves in a given sequence of values. Basically, there is no sequence of Fibonacci. There is no addition, pullback, addition, pullback, addition, pullback. As simple as that. So the first step you will want to do is to follow the Fibonacci on established trending conditions. If you have no clue about how the waves develop, the price action Um, I really recommend you watch this video on the right top corner, get some basics about the price action. And if you want to take it to the next step, then if you are inside Home Trader Club, go to the media zone in the section of the webinars. Make sure you watch the VIP price action course we have here. Make sure you watch the price action in cycles, okay? And only then you will start to understand properly how the waves actually work. And if you are not in Home Trader Club, then you are more than welcome to join us. You can find the link below this video in the description. So how do we go with Fibonacci? What do we measure and where from to where? Is based on the trend with the pullbacks, as I just explained, and how to measure it physically inside MetaTrader. Of course, every different platform will, will give you different, uh, buttons and icons, but the logic is the same. When you take Fibonacci retracement, you need to measure that from the beginning of the trend you want to measure until the end of the trend you want to measure, not the opposite way around. What I see many traders do is they go from the end to the beginning. Absolutely wrong. Okay, so what you will want is again from the beginning towards the end of the wave, the sequence of highs and lows in terms of waves that you will want to follow. After that, you will want to get your opportunities from inside the Fibonacci levels. Where exactly from? That's the next part of this video, the strategy I would like to share with you. But before that, I would like to invite you to our trading family, the Home Trader Club, where you will be able to get your access to very comprehensive, full, complete trading courses which you will be able to find here inside under the section of education. You have parts for the beginners, you have videos for the advanced which are also spread in the media zone, you have courses there inside. You would be also able to enjoy our trading, real-time trading education and trading opportunities shared with you in our dedicated trading channel where you will be able to find the videos and of course the detailed trading journal that you will be able to find anytime here and in in our dedicated Telegram group. Besides that, you would get your access to our weekly videos, educational videos, market analysis, comprehensive detailed explanation on all the trading activity. You would be able to watch all the webinars, educational webinars on tons of subjects including the cycles, the divergences, Uh, candle patterns, price action, and way so much more. So that's another thing you have. You would also have a lot of trading tools you would be able to find inside, and of course access to our community. So join our family with the link below this video in the description. I hope to see you with us. So the strategy would be find a divergence on any time frame. For example, I will take the example here on the EUR/USD buy, and I want to present you a trade directly from Home Trader Club. This is the buy, okay? And I want to explain what, why, and how. Why exactly? This was a live call, by the way, as we are in our trigger zone. And I want to explain, break it down and explain what is the logic behind this trade, why specifically here, and why are we picking these targets the way we do. So for that, let's go back to the chart. So the first step, as we discussed before in the video, is to find the sequence of the Fibonacci correctly. Okay, um, just for example Here is how I picked this buy trade. We got here a sequence ofā look at the candles: high, high, high, high, high, low, higher highs, higher lows, then a retrace of lower highs, lower lows, another rally of higher highs, higher lows, pullback of lower highs, lower lows, and another rally of higher highs, higher lows. That creates a sequence, a bullish sequence of higher highs, higher lows in terms of waves. That means that on top of that move, I can plot Fibonacci. So what I do is I plot Fibonacci from the bottom, the beginning of the move, until the end of the move. The most useful Fibonacci levels is the 38.2 down to 61.8. Most common, most popular, most useful, you name it. Okay, these are the most powerful waves. Sometimes 23.6 has value, sometimes 76.4 would have value, but in different market conditions. Majority of the times, that 38 down to 50 would be the valuable part. And what I love to combine is I go and I break down the trending structure I showed you before, and I connectā because we are looking to buy, I'm looking for the lows in this uptrend. That's where the buyers already took control from. This is zone 1, and this, as you can see here, zone 2. Guess what? The Fibonacci lines up perfectly there, and this is how I know, aha, it's not just Fibonacci, but now it's also a demand, which means my probability here is increased. So what I want to see is exactly that. On step 1, I have trending conditions on the trend where I can plot Fibonacci looking for a retrace to inside that area, okay, where the Fibonacci would line up with demand and supply. The secondā I'll do it this wayā the second rule in this strategy is I want to see that on a higher time frame, 1 or 2 time frames, There is a bullish divergence because I'm looking to buy. So if I go toā by the way, if you have no clue what divergence is, I really recommend you watch this video here to get some basics about the divergences. And if you want to take it to the next step, as I showed you before already, inside Home Trader Club you would find a lot of videos in the media zone and also full trading courses, so you can join and watch and learn exactly how it's done properly. So what we have here is a bullish divergence on the 4-hour chart, which means lower lows on the chart, higher lows on the moving average of the MACD. RSI joins the party as well, and it doesn't happen only on the 4-hour chart, it also happens on the daily chart. Where we can see here a bullish divergence taking place as well. Lower loss on the chart, higher loss on the MACD, and of course the RSI as well. That is screaming buy. Okay, so what I am looking forā I'm not just going to buy because it's screaming buy. I listen, I hear out the market, and I'm waiting for the opportunity. And what we got there is the step 1 was established again here. That's the trending condition and the return to the Fibonacci zone. Step 2 was completed. There was a bullish divergence on 4-hour and a daily chart. And from inside here, I want to see priceā bullish price reaction. That's basically bullish candle patterns, or again, a sequence when the lower highs are broken and we start to make Higher highs, higher lows, and that happens right at that point where after the lower highs, lower lows, we finally start to see higher highs, higher lows. That's why if I go back to inside the trigger area, this is the place. Take a look at the end of this move from the lower highs, lower lows. We finally got higher highs, higher lows here, which flips that condition. The third step. Is how do we determine targets. So let's go back to the chart, and what we can do here now is go back to the daily chart because this is our main cycle here. Plot Fibonacci retracement on the whole trend, and remember, don't forget, the trend must have the sequence of lower highs, lower lows. We got the 23.6, which is First zone, 38.2, next zone, and then potentially 50%. What I do next isā this was the 1-hour chart waves I showed you before, right? So let me go back to the 1-hour chart so you see how it's done. That's the waves. What I plot here now is Fibonacci extension, which basically the way I do that is from the beginning of the trend through the end of the trend. This is the 1-hour chart, the trend I'm looking to join. The one from theā then to the end of the pullback. And that gives me, as you can see here, Fibonacci extension levels. Now this isā that's why this isā I'm looking for the zones where the Fibonacci retracement From higher timeframe lines up with Fibonacci extension. Boom! That's the zone you would want to pay attention to. I love to call that a magnet zone where the money is like a magnet, very likely would take it up to there. So this would be the first target zone, and then the next target zone is going to be on the next place where we have the 38.2 from the daily. And the 161 Fibonacci extension of these waves. Okay, 2 classical zones. So the final step is the most important step: make the numbers work for you, meaning the risk-reward should be in your favor. In your favor means that the risk is smaller Than your potential reward. Okay, which means this way, imagine like, like for example, you are risking 100 pips and your target is going to be 20 pips. This way the numbers are not working in your favor. But if your target is 120 pips or 150 or 200, the more the better, right? That means the numbers now are in your favor. And if you work as low as 50% success rate, accuracy rate on your trades, you would be making money. Because if you lose 100 pips and then on the next trade you win 120 pips, you won 20 pips, and that means you are making money from 50% success rate. And of course, the bigger the target, the better it would be. So if this is our call, I'm checking how much am I risking here. Versus how much am I profiting here? That gives me about one to this is about 100 pips stop loss. This is about 150 points target. That gives me about one to one point five risk reward ratio. In terms of how to make numbers work for you, I highly recommend watching this video here on the right side to understand the importance of numbers. And how this is a crucial, uh, um, thing you need to do in order to control your trading and do it successfully and professionally. Now, this is exactly the breakdown of the strategy we discussed. The first target zone, as you can see here, was reached. It took some time, but basically the waves made very logical wave Right? Move, then some sort of consolidation, and another rally in pretty much same speed as the one before. And that's why once again you will want to make sure you got the trending structure where you plot Fibonacci, the bullish divergence or the divergence in the direction you want to trade, and then retrace to the Fibonacci levels. Price reaction that reacts to the direction you want to trade, and final stage, risk-reward to be in your ratio. The combinations of Fibonacci retracement with Fibonacci extension give you magical targets, and that's something you need to know. That's what a lot of traders don't know. They think Fibonacci retracement is only for entries or for, uh, zones to, to watch the trade, but they also act as magical target levels, especially when they lined up with higher time frames Fibonacci, uh, or both retracements and extension. And when the Fibonacci line up in supply and demand levels And take a look what happens here. Look at this supply. Lots of sellers here right next to the target. Look at all this supply here. It's right next to the next target, right? So that, that, that's how you know that your targets actually make absolute sense and they behave like magnet levels with high probability to deliver phenomenal moves, risk-reward ratios, of course, and great trading opportunities. That's it for this video. As always, I hope you find value in it. Please hit this like button if you do, and if you are new to this channel, please consider to subscribe with the subscribe button below this video. I also want to invite you to our Home Trader Club, our trading family. Get your access to our full trading courses Get your access to our real-time trading opportunities and real-time trading education, our community, the tools, the comprehensive media zone, full courses, and so much more. Join our family with the link below this video in the description. Thanks for watching. Best to you and yours, and I'll see you soon with more. Good trading. Bye for now.
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