This article has been translated from English to Gen Z Slang.
Like we said in the previous lesson, using Fibonacci levels is kinda subjective, ya know? But there are ways to stack the odds in your favor.
While the Fibonacci retracement tool is hella useful, using it solo is like ghosting your squad on a night out—no bueno.
It’s lowkey like comparing it to NBA legend Kobe Bryant.Kobe was the GOAT, no cap. But even he couldn’t snag those rings solo dolo.
He needed a whole squad.
Same deal with the Fibonacci retracement tool. You gotta squad it up with other tools.
In this lesson, let’s flex what you’ve learned and put it all together like a snack-worthy charcuterie board for spotting those spicy trade setups.
Are y’all vibing with it? Let’s get this pip party poppin’!
Fibonacci Retracement + Support and Resistance
One of the prime moves with the Fibonacci retracement tool is peeping those potential support and resistance vibes and seeing if they’re syncing with Fibonacci levels.
If Fibonacci levels are already pulling a crowd as support and resistance, and you hit ‘em up with other trending price areas tons of traders are clocking, the bounce odds level up like crazy.Let’s check out an example of vibing support and resistance levels with Fibonacci game. Here’s a daily chart of USD/CHF.
As you can see, it’s been on an uptrend, shining bright like diamond green candles!
You’re all like, “Sign me up! I wanna hop on this USD/CHF hype train.”
But the question is, “When do you jump in?”
You whip out the Fibonacci retracement tool, starting from the low of 1.0132 on January 11 for the Swing Low and the high of 1.0899 on February 19 for the Swing High.
Your chart now looks aesthetic af with those Fibonacci retracement levels.
Now that we've set the scene to upgrade our chances of seeing a lit entry point, let’s answer, “Where should you jump in?”
You peep back and clock that the 1.0510 price was a resistant thot in the past and now it’s vibing with the 50.0% Fibonacci retracement level.
Now it’s broken, it could just glow up as support and be the perf place to cop some.
If you put in an order around the 50.0% Fib level, you’d legit be a happier-than-ever camper!
There would have been some hella tense vibes, especially during the second support level test on April 1.
Price tried to ghost through the support but couldn’t seal the deal below it. Eventually, the pair went extra and broke past the Swing High, resuming the swaggy uptrend.
You can pull the same moves in a downtrend too. Just look for those price points that once caught some major eye contact.The potential for price to bounce from these levels? 💯 higher.
Why tho?
First off, as we spilled the tea in Grade 1, previous support or resistance levels are lit places to buy or sell ’cause other traders are scoping these levels hard.
Second, knowing that loads of traders are big on the Fibonacci retracement tool, they might be eyeing these Fib levels too.
With traders glued to the same support and resistance levels, there’s a good chance that these price points are lit with lots of orders.
No promises that the price will bounce, but at least you can trade with more confidence. After all, squad support is everything!
Keep in mind, trading is all about those % bets.
If you keep it safe with those high-probability trades, you’ll definitely stack the odds in your favor in the long haul.