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00:00Last piece of the puzzle for Module 5, Mr. Fibonacci, good ol' Fibonacci.
00:07I use this tool day in and day out. In fact, most of my trades, 99.99% of my trades, are all FIBO-based.
00:15So, before we get into a chart, we just do a quick rundown on what FIBO is all about.
00:21For example, if you are on a bull FIB setup, you are actually looking for a place where price might be traced into a zone before it reacts and bounces back up to form a higher high.
00:37So, FIBO will calculate and give you an algorithm to an area called the Golden Zone.
00:43And that zone is a place where you will place your buy, assuming it's a bull FIB, or a sell if it's a bearish FIB.
00:50So, let's go and take a look into the chart on how we can plot FIBO naturally. Let's go!
00:57Nice and easy. Easy trades. Let's go!
01:03Same old, US$34,115 is done. The market is going as such and we are going to find a place on where we can set our FIB.
01:14We can see that the price is on an uptrend. So, what has to be in our head is a bull FIB.
01:21So, we have to wait for price to go up and then form a small retracement.
01:26And then when we suspect that retracement is going to go back down, that is where we are going to pull our bull FIB.
01:32Currently, price is going up and it is consolidating over there in your H4 zone.
01:39So, as the price consolidates, there is nothing that we can do with FIB.
01:42We got to wait for price to break down from that area, form a possible retracement.
01:48At least, we can suspect it to be a retracement and then we can pull out our bull FIB.
01:56As of now, still nothing can be done. The only thing we can do is wait and see if there is a breakdown.
02:03There we go! Breakdown has happened and then we are going to straight away pull out our bull FIB.
02:08Now, where do we start? Point A. Point A will be the start of the trend on its body.
02:13And point B will be the wick, the uppermost part before it retraces back.
02:18And then a zone is formed and in that zone is where you are going to place your buy.
02:24You may enter three positions on the three lines of the line.
02:29What I usually do is I will enter four. Top one will have one position.
02:33The middle one will have two positions and the last one will have one position.
02:37Either way, it is going to hit and the price is going to be triggered.
02:41There we go! It hit the first two zones or the first two lines.
02:45I'm going to click buy there. Four positions on that line alone.
02:48Where am I going to TP? I'm going to TP on the next high.
02:52That is the current high. So, the next possible high will be in that zone, the H1 zone.
02:58My stock lost from the lowest line of the golden zone.
03:02I am going to trace back to my left and see where the lows are.
03:07So, there are two possible lows. I'm going to be safe. I'm going to take the previous lowest low, which is that point.
03:13At this time, I'm just going to let the trade run and see how it goes.
03:18Price has reacted to the H1 zone. All we have to do is wait.
03:22TP point, like I said, there is no black and white and hard and fast rule where you want to TP.
03:27It all depends on the zones that you have set up.
03:29There we go! Boom! It hit our H1 zone. TP is done.
03:33So, that is how you set up.
03:35With the start of the trend, the body is where your point is.
03:39At the end of the trend, the wick is where your point is.
03:43The feeble zone is formed, called the golden zone.
03:46And that is where you place your entry.
03:48How many positions is up to you.
03:50Place all your lot sizes.
03:52In this trade, I placed four positions in one zone, or the one line, the 70.6 line over there.
03:59I had placed four positions.
04:01And my TP would be the H1 zone, where it has formed a newer high, or a higher high.
04:08So, that is how you set up your feeble zone.
04:10And this is important because you will have to use this a lot once you are familiar with S&M.
04:19Feeble is the anchor zone that you have to set up.
04:22Without the anchor zone, your S&M is just going to go down the drain.
04:26So, master this skill. Keep backtesting it.
04:29Repeat it over and over again until you master it.
04:32And then, proceed to S&M.
04:34Once you are on S&M, your 4150 is out of the window already.
04:40So, you are going to have two charts on your window.
04:43So, if you are on a desktop, you are going to have two different windows over there.
04:46One window is going to tell you all your 4150, your parallel, whatever.
04:51The other window is just your S&M.
04:54Over there, you will just have to focus on S&M.
04:59Find that anchor point.
05:01Find possible TP1 and TP2.
05:03Other window is just purely 4150 and your feeble.
05:09Where you TP on the zones that you have set up.
05:12It is different from your S&M.
05:14You cannot put everything together.
05:16Stay focused on the plan.
05:18If your plan is S&M, look into the S&M chart.
05:22Look into the S&M window.
05:24Not look on your 4150 window.
05:26If the market is slow and it is crawling and it is not moving,
05:30go to your 4150 window.
05:32Play in that zone.
05:33You don't have to look at S&M.
05:35But, know that S&M is a direction where you are heading towards.
05:42Once you look into your 4150 window,
05:44you know where it is heading towards.
05:46There, you can have a small win.
05:4820 pips, 30 pips, you are out.
05:5020 pips, 30 pips, you are out.
05:52Until your S&M is triggered.
05:54Then, you just put your 4150 window aside.
05:56Just shift your attention and your focus into your S&M.
06:00That's all I have on your Module 5.
06:03Module 4 coming up will be on your indicators.
06:06Till I see you again.
06:08Nice and easy. Easy trade.
06:09Let's go.
06:11Easy trade.
06:12Let's go.