Free Guide: 6 Fibonacci Types that Create the Most Precise Price Targets and Reversal Zones
Hi, I'm Tom Winterstein, MBA | ChartPros founder & Certified Mental Performance Coach.
I grew up in a small upstate NY town named Binghamton, I remember back in college during my undergrad days at SUNY Broome and then later at the University of South Carolina during the 1980s sitting through many different math and statistics classes wondering if I would ever really need to know these things like moving averages, standard deviations, Fibonacci series, etc. to work in the real world…
And while I always got good grades in math classes for as long as I can remember I secretly concluded that even though I enjoyed all math classes that I probably wasn’t ever going to use any of these math concepts again.
And for the better part of a decade that turned out to be true until I started trading using Price Action Technical Analysis which initially, I never believed in until I realized the math behind it!
Now, don’t get me wrong… a trader doesn’t have to be good at or even like math to properly use Fibonacci levels on their charts.
But what many traders don’t realize is that it’s all about the math (think probabilities) when it comes to finding edges and trading them.
Thankfully every charting platform out there does the math for you, you just have to understand how to apply it.
Sometimes that’s easier said than done so that’s why I created this free Fibonacci guide for traders like you.
About the only thing guaranteed in the markets is that price cycles. It cycles up, and it cycles down. Across all charts and across all time frames.
What’s important to really know and how to do as a trader is to benefit from market cycles. In this guide I’m going to show you how to use Fibonacci to anticipate levels and zones where price can turn as it cycles.
What’s not important is predicting cycle tops or bottoms. Let me repeat that: What’s not important is predicting cycle tops or bottoms because as traders we can still identify levels of interest using Fibonacci even when they’re not the cycle top or bottom!
Fibonacci, often referred to as “Fibs”, are one of the most commonly used tools in Price Action Trading for trending markets in helping create measured price movements which can assist you in creating bi-directional future levels of interest and anticipate trend reversal zones.
However, Fibs are often used incorrectly by traders causing lost or missed opportunities.
Why do we think that is? Because most Fibs that we see posted on the internet are not drawn or used correctly and we realize that most traders didn’t learn from institutional traders that understand how the trading algorithms are developed and used by professional traders.
There are many free Fibonacci resources for traders to be found online. Most explain who Mr. Fibonacci was and go into in-depth mathematical explanations. And that’s fine, but in reality, knowing that information won’t help you become a better trader so we’re going to cut right to the chase and reveal only the necessary information that you can start using on your very next trade!
This free guide will explain to you exactly what Fibonacci retracements and extensions are and how they should properly be used on your charts.
First and foremost, Fibonacci is a Trending Tool to identity potential reversal and extension levels in price action across any time frame. These price reversals, referred to as retracement levels, can be used for both bullish and bearish trends for trade entries and stop loss levels. Price extensions, referred to as “targets” can be used for profit taking, stop losses, and completions for what are called “measured moves.”
In many cases, using fibs can accurately provide precise levels where price may reverse but more importantly using fibs can provide “zones of interest” where price may change direction. Knowing how to chart these levels and zones can provide potential trade entry levels, stop loss levels, and fib completions levels referred to as profit targets.
The most commonly used Fibonacci drawing is known as the “Swing Fib” which virtually “every trader in the world” that uses Fibs will have on their charts.
Now, if you're ready to learn about all the other different types of Fib retracements that you can use on your charts download the free guide:
Download Your FREE Guide Now - Fibonacci Types that Create the Most Precise Price Targets and Reversal Zones