 Hey, everybody, thanks for checking this video out. Now, this is going to be a more interesting video because here at Cybertrading University, myself and Fausto Puglisi, we follow the big money, we look for the iceberg orders, we use level three and level four. And rarely do we ever really use indicators. In fact, Fausto hates them. Myself, I'm a little bit more curious. You know, I started with him back in 2014. And, you know, although I've, you know, kind of made my bread and butter to be iceberg orders and level three and level four myself, I know I ended up dabbling with a couple of different indicators over time. RSI, MACDs, you know, moving averages and all of that. And a lot of Fibonacci's as well. But there's one that stood out to me on TradingView, tradingview.com. If you're unfamiliar with TradingView, they're one of the lead chart and scanning websites, you can create an account right away just on their webpage and use really any of the indicators that they offer. There is one indicator in particular that stood out to me, and it's called the Fibonacci channel. We're going to look to go over this right now. We're going to cover this on a few different examples here. We'll cover just major name brand companies, mega cap companies, as well as indices and even crypto like Bitcoin. So this could be used across, you know, any different ticker. Now, from my experience, one of the things just with using any indicator, it's simply that on a higher timeframe, higher timeframe chart, you're going to find more success with significant levels that come out of it. You know, low timeframe levels don't really play out on high timeframe moves. High timeframe levels do play out on low timeframe moves. So you want to focus on high timeframe levels regardless, whether you're looking for a short term swing or a longer term over time, we're going to start off actually on the S&P. We're going to actually begin this by going over the S&P index S&P 500, of course. So we're going to go right to the symbol search, go right to S&P 500. All right. Here we are in the S&P. So what we're going to do is begin by going over really just, I'm going to go all the way back. This is a monthly chart. Granted, if you actually go back on like the yearly graph for the S&P 500 historically, you can go back as far as the late 1800s. If you move it towards a monthly though, what you're going to find is that you're not going to really see as significant data across the board up until like 1950, basically. So the thing that stands out to me with this graph, of course, is that it only went up over time rarely as there have been a major drop back, a major shake over time historically. There is a long point of consolidation here within this range. And then once it took off back in like the 80s, early 80s, it ended up continuing. So with that one thing I want to show at the Fibonacci channel is that in order to use it, you want to use a significant bottom. And what you're going to do is connect that significant bottom to the next historically significant bottom over time. Now that next bottom can change depending on the trend and the movement of the stock as you're following it. So you could have used it here within this range between 1975 and 1981 or 1982 to project future levels ahead across a channel. But here we are now in early 23. So we're going to look at this just long term and say, hey, we have a really significant bottom back from November of 74. And back from the end of 2008, early 2009, we ended up seeing this shake down and make a pretty significant bottom historically here. One tip I might as well add while I'm at it to begin kind of jumping ahead. You always want to use a logarithmic chart, a logged chart in order to use a Fibonacci channel. Otherwise, it makes it look really difficult to try and apply this. So with that said, we're going to use a log chart and we're going to begin with the Fibonacci channel. What we'll do is actually just go right to this little tab here. And this is the GAN and Fibonacci tool selection. So there's a whole bunch of different indicators here. Other fibs as well that you may not be familiar with, those that I really haven't dabbled into right away myself, like Fib spiral and speed resistance arcs. So here we are kind of towards the top part, fib channel. Alright, so embrace yourself. This is actually pretty pretty interesting how it plays out. I'm not going to try and get the exact prices. It would take just a little time and just I don't want to kill too much of your time on this video. So we're going to just kind of estimate these. You have the first significant bottom back in 1974, the second significant bottom all the way later on in like, you know, early to mid early 2009. Now what I'm going to do is use this peak because it didn't make a higher high. At this point, it ended up peaking here, right? So we have two bottoms. And in between those two bottoms, we have a pretty significant peak right there back around like 2000, the dot com bubble. So with that again, these aren't exact prices more of kind of just a quick drawing for you folks. But what I want to do is kind of reset this and show you at least after this bottom 2009, how did these levels play out? You know, is this going to be really reliable for us to use long term or at least in order to project future support resistance lines for for equities or, you know, indexes here. So with that, at least, you know, we'll start to kind of use these levels after this bottom here in 2009. So what happened since well, it ended up holding this one extremely well. And I'll zoom out just for more of a perspective here. The 23.6% line ended up acting as support right here across 2010 into 2011. The 38.2% line, which will be in yellow as we'll zoom back in, you could see that was being held as resistance right there for a long time. And once it broke above it and ran higher, look what happened here. We had a pretty little shake under and over, right? But the fact it still closed over this yellow line, the 38.2% retracement, it showed strength and it allowed it to actually bounce off of it later on. All right, next up, the 44.1. Now this one I ended up actually making manually, you can create other levels in between here. What I believe I did was I ended up kind of just doing a midway point between the 38 and the 50. We're actually going to skip over that. I'm going to use that more for crypto for Bitcoin coming up on our next example. That was more meant for that example. So next up is the 60 or next up is the 50% retracement line. So this one is quite popular just on fit retracements and extensions, the green right here. So you could see after it broke over the yellow, the 38.2, it moved up to the midway, the 50%. And you know, hey, it had some trouble with it over time here, at least back in the end of 2018, you know, where you would expect for it to run off of this at that point, it ended up making a huge shake and break below that price all the way back down close towards the 38.2. And then even just, you know, going into end of 19 early 20, more or less, you know, we ended up having COVID. So the thing with any indicator, even if you're on a high timeframe chart is that, you know, you can't necessarily plan for a pandemic or for any worldwide event that can cause just a major shift within the market short term. So it ended up leading to this big shake down. And then of course it ended up recovering and holding back above the 38% line 38.2, it moved back over the 50% and, you know, with it breaking back over that resistance, once again, you would expect for it to at least hold it better as support or otherwise it ended up running. Now the support comes in handy here. This is the cool part. So for as much of a trouble, this was acting as a clean breakout level as resistance, the 50% line in green, you know, of course here, just coming off COVID or midway through COVID as it broke back above the 50%, it ran from that point. So very basic but core charting principle is that you would expect resistance to eventually get flipped into support. With the drawback that we had from the beginning of 2022 into now, into the end of the year, basically, it ended up acting as great support, didn't it? It ended up breaking under it. Well, it ended up closing above it here. And then it ended up breaking under it back in October of 22 and then closed pretty nicely above it. So, you know, perhaps over time even heading into early to mid of this year as we're now in mid of January 2023, you know, we could expect for this to become support over time. And then we'll see if this could provide a higher low and for it to move back up. But then otherwise again, just over time, our next big level to work off of is the 61.8% line, also a pretty significant level. I'm not going to say it acted really well here, although it looks like it did. Because to be transparent, these lines shouldn't really come into play until the second bottom is formed here. So again, you have just these two historically significant bottoms and this major top in between them. And that's what created this channel. So it looked like it held it previously, but I'm still going to expect for this to be a pretty strong resistance if it can make it up towards there, you know, soon enough. So that's what we have here across the S&P. Let's check out our next example coming up on Bitcoin. Alright, so here we are right now. What I'm going to do just before I show the chart is just for the symbol search for Bitcoin, what I really like to use is the Bitcoin all time history index. So this gives you the entire graph, there's, you know, several exchanges for crypto and Bitcoin in particular. Binance is the most significant right now, right now with, you know, Sam SBF and FTX, all that crap that went down a few months back, right? So you never want to trust any one exchange, but with Bitcoin, there's one long term all time chart and this is it here. So once again, this is the Bitcoin to USD, but I ended up typing BTC index and you'll see right here, it's this one all time high or all time history index. So we click it and you get all the data. So there's a couple of channels that you could use on this over time, but I really want to dig into this here and at least a more low timeframe play that's happening right now at least across this given week and even today. So what we'll do is begin by kind of just looking at this across the board from, we'll start off more from here. And we could have went back to 2012, 2013, but I think it's pretty evident that we have a pretty significant bottom right here, right? Just, you know, either or of these bottom doubt in August of 15 and January of that year ended up making its second bottom. I'd say right here, you know, even with this pull back that we had during COVID, it technically didn't break lower. So this truth be told is our second significant bottom and we have the top, which is right in between it. So let's use that for right now. What was the lower low here? We have 166.45 162. We'll use 162 roughly just kind of right there. The second bottom right. So it ended up breaking out of the channel right over here. At that point, perhaps you expect a much bigger pullback and fall over time. So thankfully it ended up not only recovering from COVID and the US markets recovered and moved back up themselves. But as it broke back over the bottom of this channel line, it ended up continuing to push up. Now the long story short on this one at least is that look what held this resistance over time. So let's take a look. We ended up having at least the 38.2% retracement here within the channel. It acted as resistance once. And then when it moved back up, this could have been a very big telling point to see this try and break above the 38.2 and flip it into support over time. But clearly that didn't happen. It looks like it held it perfectly almost head on. And then from there you had your lower highs. So that's extremely interesting to see. But you know, at least more recently across 2022 or midway of 21 into now, what I want to show is a daily chart. And we're going to apply it towards the downtrend line. Alright, so here we are on Bitcoin just more recently from the end of 2021 into present day. So we're going to use a Fib channel here just to try and show where this stock is going to look to hold resistance move up to, you know, obviously we've seen a squeeze up from the last week or so the last few trading days at least, you know, made a really strong run back up. So a lot of folks I'm sure are wondering on this, even if you're not interested in crypto, it's to ask like, you know, where is it going to run up to? Is it going to make a new pop in bull market? I'm not led to believe that I think this is going to pull back quite a bit. I think that we're going to remain flat across this year. But you know, otherwise to use the Fibonacci channel, what we'll do is use this top, we'll use the second top right here. So inversely to following an uptrend for a downtrend, you want to follow two distinct peaks, you know, the first high and then a second high making like a lower high at least from that stage. So you have from the end of 2021 in November. And then here, basically at the end of March, early April, ended up making that lower high, roughly off of 4748,000. And then we have this bottom here, roughly around like 32,000, 33,000 roughly. Just put it there. Okay, so there's a line here. I wanted to delete. I'm going to change that in just a moment. But you could see here. Now, you know, this is where I say a low timeframe move is not going to prevail when we had such a run up just long term here historically from 19 all the way to the end of 21 three years time, it ended up not only dropping back, but it made a lower high and you know, core basic charting principle, but a lower high often creates a lower low. So it ended up breaking lower, it ended up breaking below a lot of these different fit lines and over time, well, flattened out. So it looks like here, though, the 100% line roughly here at this point from this bottom, it ended up acting as support, right? So that's the easy and hindsight part to say, you know, from my end, and I want you to know that I know that I'm always realistic. Over time, though, it ended up beginning to hold resistance pretty well. So it ended up moving back up towards the 61.8% line here. It held that extremely nicely. It moved up towards the 50% line here. And this is where things get interesting. So, you know, back from a few days ago on January 10th, it broke above that line. And, you know, it was teasing this as resistance for quite some time. So again, even since this lower high, and these levels become, you know, respected and used, what ended up holding the 50% line extremely well as resistance, a few different false breaks above it. So the more times it could knock its head on this line, it should give and it shouldn't give you that run. But personally, and again, this is just the transparency behind this, I would have thought that this would have taken a little bit longer for this to pop and make this run. So it really blew the roof off at least short term off the 50% line. So much so it ended up breaking above the next one, right? It broke above the 38.2% line right there. Now, this is where things get a little interesting. I'm expecting a pull back, not only because it broke above this line here, but there's one I'm going to try and make here. I think it's if I'm not mistaken, the 30.9% because I think it's in between the 38.2 and the 23.6. I did the math on this last night and I wanted to put this up in front of you here. So I don't have a notepad in front of me. Let's see if I get this right. I believe it was the 30.9% line. So I'm going to draw that. It is okay. So check this line out. The reason I posted this, I mean, a it's directly midway between the 38.2 and the 23.6. It's not really a significant level to use all the time. But the reason I put it up is because well, back from the end of April into like, you know, late May or early May, it ended up holding this extremely well as support. You know, I knew that there was some support line being held here. And when I put this, you know, next line up, it led me to think, wow, this kind of correlates pretty well here. And as soon as it broke below it here, it crashed, it tanked. So if I'm adding one and one together and making two out of it, I'm expecting this support to become resistance. And you could have said the same with the 38.2. The 50% was resistance for a long time here from, you know, late May all the way to present day. And finally just now after, you know, probably about eight, nine months, 10 months, it broke over finally. Now at this stage, though, this is where we should expect the next major resistance to get tested. So it's not a common fib level to use, but the 30.9% line here, which held extremely well back from April into May, I'm expecting that to be a top now. And look what's happening right now today, Friday the 13th, nonetheless, spooky. Let's actually go right into a one minute chart day trading chart right here. So you could see it ended up breaking above that price, it broke above it, it ended up scooting on up a little bit more. But since it pulled back under it, you know, right now the SMP altogether is making lower highs. I think even right now trying to snap up a small amount like Bitcoin is, but you know, I'm expecting this to hold as resistance to make lower highs at least off of this area. Again, we're focused on 12 month, 13 month downtrend here at least at this point, if not longer. So I should look to respect these levels here at this point, especially considering how well this held here. Alright, so you know, hey, even if you're not interested in crypto or Bitcoin, this is a really good use case to try and demonstrate the fib channel. Now, let's jump back to equities. And what we'll do is go through a few different mega caps like Apple and we'll try and plug through a few, even if it's not going to give me what I want. But let's look at Apple here to begin. Alright, so here we are in Apple. And, you know, one thing with Apple is that it's a mega cap company, it's often going to move with the SMP or the major markets alike. So it's easy to say that, you know, since 2005 2006, it took off, it ran. But this is where you can use a fib channel to anticipate price action before it took off. Well, one thing to note is that we have a distinct bottom, well, you know what, yeah, we'll use this, we have a distinct bottom here. My little buttons are blocking that, but distinct bottom right around there. It was like 12 cents, 11 cents, it was probably factoring in the split that it recently had over the last year. So, you know, it wasn't necessarily 12 cent stock back then, but it's to say, you know, we have a bottom here, we have our next bottom roughly right here back from early 2003. And we have our top. So we're going to use it here on Apple. And we're going to plot to see where we have potential support resistance, at least for the near future after this bottom is built. You know, this is kind of just a five year, six year window that we're using. So in relation to a 23 25 year window, you know, these levels over time are not going to become real or are going to be less and less relevant. But at least here coming off this bottom, what ended up moving up, it ended up holding resistance once again off the 38.2%. It broke above that. And then from that point, of course, it's easy to say that it ripped, it took off. But over time, it ended up using this as support pretty well, the 78.6% line. It ended up holding under the 100% line here just off this peak pretty well. And as it re broke over it, it led to the next run up the 161.8% line you could see held pretty well as resistance, you know, in 2011 into 2015 here even. So hey, if Apple continues to push up, you know, perhaps it can make it as high as the 261.8. And there could be levels in between that I could look to plot. But otherwise, though, given that this was resistance, I would look for that to become support in the near future here on Apple. Now, at least in the near future, if we kind of look across the next year, that would mean Apple would have a drop down to 100 bucks. If you're expecting the market to move lower over this next year, or for it to at least remain, you know, flat or horizontal, then it could provide Apple that chance to draw back more. I mean, hey, over time, seeing this pull back to 100 really isn't, you know, that far of a move, at least given from the highs, it was at 180. Now it's at 133. So another 33 or so points down. That's not impossible. We could definitely see that happen. Of course, if the markets make higher lows and, you know, Apple shows good strength on like earnings or quarterly reports, you know, that could obviously mean for this to run back up again. But, you know, given how strong this was resistance, it was holding above it here for about eight years before it recently blasted above it coming off COVID. I would expect for that to be support here coming up. Let's jump to another stock as well. What we'll do is kind of just go through one more. Let's go right to Tesla. Tesla is so volatile and you can in fact see I have a Fib channel up here. So let's even use this. Let's use this for right now. I don't think it looks the best. So I'll try and even redraw this, but it looks like I had a bottom here. I have my second bottom here and the top in between, you know, flattened out for a bit, but the top was right here back in June of 2017. So since this bottom played out, ultimately what had happened was it was holding underneath the 23.6% line here pretty well. And once it broke above that, you know, perhaps one looks to that as support, but, you know, it ended up taking off, making a very strong run. You know, perhaps news with Tesla came out at that point, you know, maybe something with Elon, one of his tweets, but nevertheless it ended up breaking above these lines once again. And ultimately it did hold this as support. If we zoom in here on this Fib channel, if I can zoom in, you could see, I believe this is the 38.2% line that ended up holding extremely well as support during COVID. That's the easy to say part in hindsight. But I just want you to know that, hey, this ended up actually holding really well as a level. So in the near future, the more that you're inclined to follow these Fib channel lines, you could be more reactant and look for an entry just like we saw on the SMP, just like we saw on Bitcoin, you know, Apple perhaps coming up off a hundred. And, you know, of course here on Tesla off of the 38.2% line within this channel. Now at this stage, it ended up breaking above the 100% line and ran up really well and broke out of like the whole damn channel. But at this stage, you know, as it begins to pull back, what's interesting to me here, and this doesn't lead me to say that this is the bounce right now, but it's a level to watch. The 100% line, it was acting as resistance here, right, across COVID, across 2020 before it broke it resistance to get turned into support over time. So that could be something to watch here coming up, you know, it broke under it, it still closed above it at least here at the end of last year. And here we are now, it's, you know, still trying to hold above it as support, perhaps it's going to be a long, drawn out consolidation, but otherwise at least, you know, it ended up holding pretty well recently. Let's go through one more and then we'll finish this video up. I'm just trying to think off the top of my head right now. Honestly, I didn't really have a plan coming into this video outside of the S&P and Bitcoin. I thought of Apple right before I pressed record. Let's go to an airline. Let's look at American Airlines, you know, not Megacap, but well-known company, major name brand company across the Nasdaq. So this chart looks pretty interesting, doesn't it? So let's try and focus in on this trade. We'll jump back to a daily chart. This is the full transparency of this video. Again, might have a little egg in my face to wrap this video up. We'll see if this pans out. All right. So what I'm noticing here is that we have a couple of bottoms we could use as an example here. What I'm going to use just to try and keep it clean is the fact that it pulled back down here in a bottom doubt within this area and distinctly here. I know this is the bottom here ultimately off this drop, but I'm going to focus here at this point more of a respected bottom and this being the ultimate dip point here. We have our second bottom we'll say right here and the peak in between it right at this point. So let's use this one last time. So that was kind of just quickly drawn, but after this dip point here, which maybe I even move up just a slight amount more, maybe I moved a little too low. There we go. A little bit better. So after this dip point, it looks like it ended up breaking above the 30.9% line at least this is. It ended up actually holding that as support. That's one of the ones I said wasn't as significant normally. It's not like a common fit line to use. So it ended up generally at least holding over the 38.2 over time. It ended up flipping the 50 from resistance into support. It ended up topping off right here at the 78.6% line. It held it very well. Over time, once this broke above this as resistance, you would expect for that to get flipped into support. It tried to do that here in 2015 into 2016 with lower highs and eventually broke below that price. And that would be respected again as resistance. Support gets broken through. Support should become resistance. So right over here at the end of 16 into 17 held pretty well once again. So the thing is that if we kind of look at this more from a long-term point or more of a high timeframe view, even go back to a weekly chart for that, you could see it ended up breaking out of this channel and only dropped off over time. So we'll need to redo this, but I just wanted to show that given that we had a pretty strong run of higher lows and then the peak here in between. So those lines were extremely effective for quite a long time here, but let's see at least recently if there's anything I could use on this. So we'll try and apply this towards a downtrend line. It looks like Americans having a really good day today, really good day actually. I didn't notice that until right now. So we have a peak, we have a distinct lower high right there, and we have our bottom right here at this point, right? So again, this is on a weekly chart and this is from the beginning of 2018 extending all the way to 2021, mid of 2021. So just about three and a half years that is, right? That's pretty respectable. So since this lower high was made right from that point, it ended up holding this year really well. The 38.2% line, you could see it broke above it as resistance beforehand, before the channel was officially made. But from that point, resistance could get flipped into support and that's what happened here over time. It looks like a messy graph back from the beginning of 2022 through to now. But the telling point though to make this a much easier graph for you to interpret and look at for a potential bounce play is simply the 38.2% line was holding really well as support. It was kind of meddling around this one, the 23.8, I think that is 23.6, pardon me. It was kind of meddling around there for quite some time. And finally with this pulling back to it here, easy to say, but that held as support. And it seems like this might look to try and break out of this channel line coming up here. So, you know, again, this is more shorter of a timeframe to use compared to the previous 13, 14 years perhaps. So if it could break out of this channel, then that's where we'll focus more on a longer play here. Perhaps what we could even do is go all the way from bottom to bottom here and use this as our top. And this could be used on a much longer term scale. What's pretty telling also, look what happened. This could be easy to say if you're just only focused on just straight trend lines rather than channels, but, you know, just basic trend line actually held right off the lows. That's, again, very easy to say in hindsight. But given that, it will create a nice set of levels here within this channel for you to follow long term. So if we're looking at this long term across this entire year, I don't know if American Airlines are going to shoot all the way back up here across this whole year, especially if the S&P and the markets are projected to be relatively flat or sideways, you know, long term. But otherwise, we would expect for this to be resistance. It ended up acting as support for a bit. It broke under it. So I would expect for that to be resistance. And then at that point, long term, if this could run all the way back up to 46 year, roughly around the 50% line, you know, this was holding pretty well as support prior to the channel being made. So kind of like what we were looking at before, at least off the 38.2 going down, I would expect for this year, should it make it that high? But it shouldn't make it that high, I would definitely expect for that to be resistance long term. All right, guys, we covered it. Fib channel on stocks on indices on crypto, like Bitcoin, we did it. We covered everything. Let me know if you have any questions, just I'm going to post my email here in the video, josh at C2trading.com. If you haven't joined us yet inside our live trading room, feel free to do so. We're going to post the link at the bottom of this video and make sure to subscribe to us on YouTube right now as well. We're going to continue to post videos like this, even if it's indicator based, our whole MO at Cybertrending University is to follow the big money. But otherwise, though, whether it be indicators, whether it be anything about level three, level four, our morning or afternoon meetings, make sure to subscribe right to our YouTube channel and make sure that you don't miss out. All right, folks, take care.