 What's up everybody, welcome on back here to the Cybertrading University YouTube channel. Now, if you're new here, make sure that you do yourself a favor first and foremost, hit the red subscribe button right down below, just on the bottom of this video to make sure that you're up to date with all of our videos and content just with our meetings and call outs throughout the day. This video here is a little bit outside of the wheelhouse but actually an update to a video that I ended up doing last year. So here, we're gonna talk a little bit about a technical analysis, my favorite indicator on the Trading View website and platform. So what are we waiting for? Let's get right to it. So my favorite indicator is a Fibonacci channel. Now, a lot of us may be familiar with Fibonacci sequence numbers along with the Fibonacci retracement lines are very popular and widely used indicator. Well, this Fibonacci channel that I'll be demonstrating to you is very similar. However, much like within the name, you can tell that a Fibonacci channel is best for a stock trading within a range or within a trend up or down, ultimately a channel between support resistance. So let's hop right to it here on the Bitcoin chart. So for anyone unfamiliar with a more popular Fibonacci retracement set of lines, well, typically you wanna work off of a bottom and a top, a local bottom here and then a top over time. Now, my technical analysis purists here are probably gonna criticize me by not putting this at the very bottom here. What I tend to do is focus more on just the overall bottom across the chart, the rounded bottom shape. I try and align it to the best of what I feel is possible. And then from there, I look for a more distinct top off, whether it's around a top like what we had back from the end of 2021, or here at least you could see a sharper top. So this is a Fibonacci retracement set of lines. Ultimately, what happened here is that after Bitcoin ended up topping off, it ended up crashing. It fell back down into this set of support lines. Now, as we ended up heading into the bear market, we ended up seeing this break lower, lower. Typically, you would wanna see the 50%, the 61.8% here in green, and then otherwise in blue, the 78.6% to be very strong sets of support levels on a pullback. This ended up breaking, of course, through all of them. But look what happened over time. This provided an optimal entry for a bounce heading into the midpoint of 2019. And with that, it ended up pushing up pretty well and from there held support and ran up once again in the bull market. Now, that's a very quick analysis of the Fibonacci retracement lines. Now, a lot of us are already familiar with those. Here, we are here to discuss a Fib channel, Fibonacci channel. They work within the same way as the Fibonacci retracement lines do, but it's built within a channel or trend up or down. So you could generally see here on the Bitcoin chart, I mean, even back from 2011 here, this was trending across the lows nicely and it went parabolic. And over time, it ended up building higher highs, but the slope and trend and channel ultimately did change. So what we're gonna be doing is going over a couple of different Fibonacci channels that this had developed and built over time. These Fibonacci channels are meant to be used more on a swing and macro basis and these levels are ultimately meant to be broken over time the more they get tested. So that's ultimately how these work. But to begin, let's actually show what happened back from 2015 to pretty much 2018, 2019. So you could tell here, this is the Fibonacci channel. This is structured very similar to the retracement set that we just covered, where it shows the 50% retracement, the 61.8% line, the 78.6. Now how to build this channel and when to use it is very important. So what I like to do is I like to find two local bottoms right here. You can see the rounded bottom that we had back from 14 into 15, which we talked about. And then over time after it peaked, well it pulled back, it ultimately hit this as the bottom. It did shake lower again here before running up, right? But we ended up having one bottom here and then the second bottom here at this point, right? From the beginning of 2019. Well, the peak in between you look to draw lastly, that's how you look to draw this Fibonacci channel. You connect the bottoms first and then you drag to the top here and it produces this set of lines to work off of over a period of time. So ultimately what happens? We ended up seeing Bitcoin begin to run back up up towards the 38.2% line here. It held it as resistance. It held it at pretty nicely as support for a little while. It broke it and then support became resistance at first and then from there pulled back. So again, it ended up actually breaking below the channel line here, although it never truly broke lower, right? So that didn't create a new low or new bottom per se, but over time once this ended up re-breaking into this trend line, into the Fibonacci channel here, it led for this to cause a new run up. Ultimately, yes, it did break back over the 38.2% line, but ran into the next resistance, the 50% Fib channel line here at this point. So made lower highs and then eventually pulled back. So once it pulled back, once it broke under the Fib channel line here, the baseline here again, back in 2022 in April, well from there, that's when this channel specifically becomes invalidated. So we're gonna look to delete that actually, pardon me. And what we'll do now is we'll look to build a new Fib channel set here based off of this bottom. We're gonna connect to the low here that we had back from the end of last year and to the beginning of this from like November time I reckon. So pulled back, I'll actually kinda put it right on that candle, that low. Now this is where it gets interesting for the Fib top here, for the channel top. A lot of purists will look to put it right at the very peak here at this point. What I see is more of a rounded top over time. So this is more of an adjustment, more of a rough estimate to illustrate the rounded top that we had over time. So I am kind of skewing it slightly, right? I just wanna make that known. But over time what we end up seeing is we end up seeing this begin to develop a pretty strong Fib channel over here. It ends up running right back up towards the 23.6% retracement here, ends up running into it as resistance, pulled back. Well, here we are now. We're beginning to see this squeeze back up again. So from my perspective, until this looks to flip this line into support or makes a much more volatile break over it where it closes above this, whether it be on a weekly or perhaps as we're at the end of June here, the monthly chart perhaps, then we could see a stronger, more bullish runup towards the next Fib channel line, roughly right here, right off to 38.2%. Whenever, wherever that may be over time here. That would likely be around 43 to 45,000 if this continues at this pace over time. But if not, and if this ends up holding this as resistance or if it makes a false breakout like it did back in mid-April, then we're more likely to see this hold and then drag back down again. You know, like we previously shown on the last Fib channel line here, this does break below the base. It could. So should this break below the base again, then it's gonna lead to a stronger snap back down and there's something that you wanna be aware of going forward for, not just to get out and you signal for a bear market, but to anticipate a potential entry later on and down the line. All right, so here's our next example on the S&P chart. Now, this is what actually led me to study the Fib channel a lot further because the more you went back on the S&P chart in particular, you have to realize that there is so much collective data and it's actually from past indexes before the S&P was actually created, but you could actually trace all the way back here. Look at this on the S&P chart all the way back to it was 1871 actually, 1871. It's from previous indexes that were used over time before the S&P was developed. So there's more relevant data as we head into like the mid 1930s, but even furthermore here. So what I ended up finding was that over time, I think it was back from the mid-70s here, this is really the last major dip point that we had before the 2008 recession that was. So we ended up seeing the S&P begin to show higher highs and higher lows until right here where it pulled back and then it broke lower. So it did break lower from this previous dip point. So I'll use this as my major base on the Fib channel. Now with that, what happened over time is that it exploded, right? The markets ended up running in the dot com error and then from there ended up topping off right around April 2000 from there pulled back and then here's the 2008, 2009 recession, the crisis there. So ended up leading to a big shake lower before the pushback up. This Fib channel is now developed based off of these two low points, one and two. In between it does kind of hit this here just in between in like 1982 as it ran up, but you have your first dip point here in 74, your second major low in dip point is right here in 2009. And then your top in between was here in the dot com error back in May and April of 2000. So it creates this Fib channel. Now, really it's to say from March of 2009, what happened? What happened since this point? Because that's where these levels become validated and used as far as support resistance. Well, once it broke above the 23.6% line here, it ended up running up. It held it as support a few instances before moving higher. Of course, it ended up using this next line, the 38.2, the yellow here as the next resistance. Look at that. Held it as resistance. It ended up squeezing back up. Now, over time, not every one of these lines will be held flawlessly or perfectly, but it is to say quite often, do they hold pretty well? You could just see over time the next line, the 50% retracement line I believe that is ended up getting held as resistance. This got flipped into support. Now, you could see back in 2018, 2019, there was a lot of rummage through around the 50% line here. So that's where you could see some chop and where it becomes tougher to focus on for a stronger trend upward. And then, of course, to given a world pandemic and global crisis, so to say, with COVID, however you may wanna phrase it, it led to a major collapse within the market and thankfully a stronger recovery. So there is a lot of shake around this point in time. Now, the talking point is what happened after? Well, this actually ended up running all the way up towards the 70.2% line. I think I may have even put that in there as like a midway point line if I'm not mistaken. Let me set the defaults back while I'm at it here. Yeah, that's what happened. I ended up actually setting that as a midway point between those two lines in between. So over time, it ended up topping off just a little underneath the 70.6 and as the markets pulled back in the beginning of 22, a lot of us were wondering where are we gonna see the markets pull back towards? Well, it's a matter of asking when a stock breaks above resistance and it runs off of it, you'd hope to see your resistance become support. All right, well, at first, this actually became support initially on the first pullback, but then it broke under it. From that point, this is your next major support to work off of and with how much it chopped around that 50% line for this period of time, it was due to hold pretty well as support. So this ultimately led to a beautiful slingshot back in October, early November, right off the 50% fib channel line. And here we are today, moving right back on up towards the next major wall, the 61.8 here, that it had a tough time breaking back above earlier in 2022. So we'll look to see over time, if we end up seeing higher highs again and this can get flipped into support, or if not, then we're more likely to see a pullback perhaps lower below the 50%. So over time, I'm respecting this trend personally, but using the fib channel, you could really use these levels over time across the markets as they move up to anticipate key support and key resistance levels. Come a cyber group member today. Just click the link below and receive all these amazing products and a world of knowledge for just $9. Do it today.