This article has been translated from English to Gen Z Slang.
Yo, back in Grade 1, we totes mentioned that support and resistance levels eventually yeet themselves outta there.
So like, since Fib levels are basically BFFs with support and resistance, the same thing goes for Fayb_styles!
Fibonacci retracements do NOT always vibe, fam! They ain't cheat codes.
Let's flex an example where the Fib retrace tool straight up ghosted on us.
Here's a 4-hour chart of GBP/USD.So, you peep the downtrend and whip out your Fib tool for some loco entry points. Using a Swing High at 1.5383 and a swing low at 1.4799.
It's been chillin' at the 50.0% mark for a few candles.
You’re like, “Yo, dat 50.0% Fib level! It's holdin' strong! Time to short this bad boi!”
You go short at the market and start vibing about cruisin' down Rodeo Drive in a lit Maserati with Scarlett Johansson (or for the lady traders, Ryan Gosling) ridin' shotgun…
But if you really placed that order, not only would your dream be out the window, but your account would get smacked if you didn’t mind your risk, fam!
Check the receipts on what went down.
The truth tea is that Swing Low was the valley of the trend, and prices started to SPIKE like crazy above the Swing High.
What’s the T here?
While Fib retracement levels give you some boss odds, they're not always gonna pop off. Brainstorm if the price turns at 38.2% before dunking back into the trend.
Sometimes it goes 50.0% or 61.8% before it chills. Bruh, sometimes price is deadass salty and blasts through every level like LeBron steamrollin’ through the lane.
Remember fam, the market can just flex right past temporary support or resistance instead of calming TF down.Another drama point with the Fib tool is figuring out which Swing Low and High you're going for.
People see charts in their own way, look at different time scopes, and have their own lowkey biases. So probs Stephan from Pipbuktu and sis from Pipanema have different ideaz on the Swing High-Low sitch.
The TL;DR is there's no one right way, especially when the trend be acting sus. Sometimes it feels like a game of chance.
That’s why you gotta level up your skills and pair the Fib retrace tool with other boss tools in your forex toolkit for success that hits different.
In the next sesh, we’ll drop some deets on how to unleash the Fib tool with other support and resistance honchos, and those wicked candlestick formations.