Fibonacci Trading

What you'll learn

• The ThinkOrSwim retracement tool, and the 38.2%, 50% and 61.8% levels
• Extension levels such as 127.2% and 161.8% for price targets
• Clusters: where Fibonacci levels from several swings or timeframes line up
• How to pick the right swing high and low, and the common mistakes

Modules

4 modules, 1 h 30 min in all, all free with an account.

1. 01

   Fibonacci Sequence in Trading

   The Fibonacci numbers, the golden ratio, and how traders came to use them.

   12 min
2. 02

   Fibonacci Retracements Tool

   Drawing retracements in ThinkOrSwim, the key levels, and entries and exits.

   30 min
3. 03

   Fibonacci Extensions Tool

   Extension levels for price targets and trend continuation.

   22 min
4. 04

   Fibonacci Clusters

   Combine levels across timeframes into confluence zones.

   26 min

Set up the Fibonacci tool in ThinkOrSwim

1. Open the drawing tools

   In the chart toolbar, go to Drawings, then Drawing Tools.

2. Pick the Fibonacci tool

   Choose Fibonacci Retracements or Fibonacci Extensions.

3. Add the levels

   Right-click the drawing and choose Properties. Retracements: 0, 23.6, 38.2, 50, 61.8, 78.6, 100. Extensions: 127.2, 161.8, 261.8, 423.6.

4. Color the levels

   For example, 50% and 61.8% in green, 38.2% in blue, 78.6% in red.

5. Save as default

   Right-click and choose Save as default to keep the settings.

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