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Fib Retracement + FVG Strategy (Trading Tech)

This guide provides a step-by-step process for using the Fibonacci Retracement tool to identify trade setups in an uptrend. It details how to set up the tool, plot it on the chart, identify entry zones, wait for confirmation, and set profit targets. Custom Fibonacci levels are emphasized for better accuracy in trading decisions.

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lakhanisanju
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52 views4 pages

Fib Retracement + FVG Strategy (Trading Tech)

This guide provides a step-by-step process for using the Fibonacci Retracement tool to identify trade setups in an uptrend. It details how to set up the tool, plot it on the chart, identify entry zones, wait for confirmation, and set profit targets. Custom Fibonacci levels are emphasized for better accuracy in trading decisions.

Uploaded by

lakhanisanju
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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TRADING TECH

Accurate Trading Using Fibonacci Retracement – A Step-


by-Step Guide
In this guide, you'll learn how to use the Fibonacci Retracement tool with custom levels
to identify high-probability trade setups, especially in an uptrend. Follow each step
carefully, and don’t forget to refer to the Fibonacci settings image attached at the end
of this section.

Step 1: Set Up the Fibonacci Retracement Tool


1. Open TradingView.
2. Go to the Tools panel and select the Fibonacci Retracement tool.
3. Click anywhere on the chart to place the tool (we’ll adjust it later).
4. Now go to the Settings (gear icon) of the Fibonacci tool.
5. Scroll down and change the values from “Price” to “Percent” for better
readability.
Next, customize your Fibonacci levels:
 Remove all levels except for 0 and 1.
 Now add these custom levels:
o 0.705
o 0.61
o 0.79
o -0.27
o -1
o -2
o -3.62

Make sure your chart looks clean with only the required levels.

@tradingtech31
TRADING TECH

@tradingtech31
TRADING TECH

Step 2: Plot the Fibonacci on the Chart


Since we are in an uptrend, do the following:
 Draw the Fibonacci retracement from the most recent swing low to the recent
swing high.
 The tool will now project levels below the current price, which helps us identify
potential retracement zones for long entries.

Step 3: Identify the Entry Zone


 Focus on the zone between:
o 0.61 level and
o 0.79 level.
This becomes your "Entry Zone".

Pro Tip: If a Fair Value Gap (FVG) exists within this zone, it significantly increases
the strength of the zone.

Step 4: Wait for Confirmation


 If the price pulls back into your Entry Zone, wait for:
o A rejection from the zone,
o And a bullish price action confirmation, like a bullish engulfing or strong
pin bar.
Once confirmation is observed:
 Enter a long trade.
 Place your Stop Loss just below the recent swing low.

Step 5: Set Your Targets


 Your first target should be at:
o The 0% level (i.e., recent high), and then
o The -0.27 level, for extended profits.

@tradingtech31
TRADING TECH

You may even use levels like -1, -2, and -3.62 as aggressive targets if the trend remains
strong.

@tradingtech31

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