 Alright, cool. Welcome everybody. My name is Crazy A. Andrews from the Discord. Today we're going to be going over the art of using the FIBO. That's what you want to call it. That's what I call it. I like to think of it as an art. For anybody who's extremely new from using the FIBO, they've never even heard of it. I'm going to pull up like a blank spot on the chart and just go over a couple of things on how I use it. Alright, so whatever platform you're on, you normally just go to drawings. You're going to pull up the Fibonacci retracement tool, which is here. Alright, then you're going to have two points on a chart that you're going to be using. I call it a swing low to swing high. So we're going to get into the very basics here. You started at the bottom. Pull it at the top. Alright, so that's going to be for a move that started at the bottom and the runs coming to an end. So now you're starting to see a pullback. This is where you're going to use it because you're going to have a retracement, right? So the Fibonacci tool and what it is, is it's a retracement tool. It can be used for retracement to the upside and be used for retracement to the downside. So what you have here once you draw it out is you have retracement levels. Each of these levels represents a percent. That percentage represents a percent of the move that we have retraced. So if you get a move from one to 10 and it pulls back to five, it's going to be a 50% retracement of that move, correct? So that's kind of what we're dealing with here. And when using the Fibonacci retracement, normally not always, but you have your 50% and you have your 61.8%. So that 61.8 in the Fibonacci sequence is known as the golden ratio, right? When you have a lot of shorts, say that are shorting and stop, they're going to be covering, remember, not always, but normally they like to cover around that 50% to 61.8. And then when you have these retracement moves after a big run up, a lot of times we're going to bounce from the 50 or 61.8. So when you see a strong uptrend and then we have a pullback, you can use that 50% as a buying opportunity using the 61.8 as your stop loss, we'll get candle closers below, all right? And then same thing. So we're going to delete this and flip it around. Same thing if you just had a big drawdown. So say a stock is coming down and you want to know the levels that it could retrace to once it starts to curl back up. So that's going to be top to bottom. And I call this, and I don't know if anybody else uses it like that, but I call it the inverse Fibon. That's what I like to use it as because it's the inverse of the regular way of using it. So I like to keep things simple. So I call it the inverse Fibon. So once you do that and you have that move, right? So you see you have your line that represents a move that just came down. So same thing here. If you have something that's starting to curl back up, you know that that 50% is probably going to be a good area where it's going to stop and start curling back down again. All right? So if you have a strong downtrend and then you have it starting to curl up, you can take puts or a short position at that 50%, right? Well, with your stop loss above 61.8, right? So that's a very basic way of using it. You got your Fibonacci retracement and then you have your inverse retracement. All right? So now we're going to get into some of the charts and how they apply. Very first one I want to show you guys was meta. That happened on Friday. All right? So first of all, hindsight is 20-20. You can always go back on the chart here and say, yeah, you know, it went to the 50% and then made a new high day. Okay, yeah, anybody can say that. So we're going to act like none of this is on the chart yet. So I'm going to break it down like the day's just opening. All right? So actually, I'm going to take it down to a two-minute chart, too. All right? So let's just say the day just opened, right? All right? So you have an opening flush and then the stock, it starts trending up. All right? So every morning, whether you're looking at spy, whether you're looking at meta, Apple, Tesla, it doesn't matter. The stock market has a pivot. 90% of the mornings, you're going to have a morning pivot. All right? That morning pivot is when you either put in a high or a low. All right? And then you pivot. And this is what happens here. So as soon as you see that morning pivot and we start to pull back, that's when you draw your Fibbo. You come here, you know, swing low to swing high. That's where it started to pull back. All right? Another thing, too, is I believe in when doing something, do it right. You know, you don't want to, you don't want to half-ass it, basically. So make sure your lines are correct. Make sure your points are correct. When you're doing it on your phone, I like to draw the Fibbo on my phone because it has the magnet. But you see here, you can go here and you can go to settings and make sure you got the points correct. Always you want to make sure you got them correct. So we're going to measure out this high. The high is 138, 37. Make sure nothing else is higher. Yeah. So 138, 37. And yes, it matters. I know it's only one pinning out, but trust me, it matters. You want to have the exact level. All right? So we're going to come down here and make sure this low is correct. 134, 64. All right, we're good. So now you have your Fibonacci retracement. All right? So now you're watching it. So we're going to assume that as soon as we started getting to pull back, you're going to call that the morning pivot. All right? So now you're watching. You got your 38%. You're 50%. All right? So as soon as it comes down to this 50%, you notice that we start getting the candle back up. So as soon as you see that, you could take calls, you know, and everybody's risk tolerance is different, but you could take calls in this 50%. Once you see that a candle closed, we went down to it, tapped it, then we had a candle closed that closed above it, right? So you could take calls immediately once this candle closes with your stop below this 50%. Using it this way, you're never going to have a big loss because you're buying where you're wrong at. I go over this a lot. If you're buying where the risk off is, you know exactly where your risk is. You know exactly where you're wrong. You know exactly what it puts your stop. It takes all the guessing, all the emotions out of it. All right? And then for your target, another reason why I like using the Fibonacci tool, you have your targets on the screen as soon as you enter the position. All right? I like to use this 23% as my target one, right? So that's going to give you about a good 2 to 1. So if you're entering on this candle closed, right, and your first target's here and your stop is below that 50%, that's going to be about a good 2 to 1 on a day trade risk to reward ratio. All right? So that's going to be take profits, number one, scaling out, and then you can raise your stop and continue to hold. Your next target's going to be high date. If you hit high day, you go ahead and take the rest of your position off, hold a couple of runners, then you can hold a risk-free position the rest of the day for a potential breakout. See what happens at the end of the day? We get a big breakout. You go ahead and close out the rest of your runners there. All right? That's a basic concept behind using the FIBO here. So that's the Fibonacci retracement on a move that's going higher. It put in a morning pivot. It pulled back to the 50% and then it goes on to hit all the targets and make a new high day. All off of that 50%, right? All right? So that's one way. Now we're going to go to spy. I want to show you guys something that I'm something that's pulling back here. We're going to go to the two-hour chart. This happened this week, so it's still fresh in everybody's minds. I'm going to put a second and look at my notes here. So this move here, you see we had a move. This long Consolidate Superior will be based for a while before we broke out to that 39750. Then we went on to tap 400. Then we had a harder rejection at 400 that pulled back. So as soon as you see that we have a rejection and we're starting to pull back, that's when you're going to pull up your Fibonacci tool to get an idea of where we may bounce or what levels that are important. If we get below those levels, you know we're going lower. If we hold those levels, you know it's a possibility we can bounce. Remember, those levels are going to be the 50% and the 61.8%. Also, depending on the strength of the rally, you can have a more shallow retracement to the 38%, but that's for smaller time frames. On these larger time frames, I like to use that 50% and 61.8%. I'm going to come here to the Fibonacci tool, swing low to swing high. Remember again, I'm not going to do it just for the sake of the time of the video, but remember make sure your points are accurate. Through here, I know they're close enough. So you see that we came down the 50%. We held it. This was actually called out by me in the group called this out. It's actually 387.50%. It was the 50%. We came down into it. We held it. Then we talked about the move higher. 390.50 was the level. Anything above 390.50, that was the move. You see where I got that level from. 390.50%. Matter of fact, for this example, I am going to use the... I'm going to go make sure the points are exactly correct because I want you to see this. 423.374.740. So I put out my spot plan yesterday. Anything above 390.50, on a confirmed break of 390.50, take calls. The first target was 390.150. Second target was 390.2. Where I got that level from was right here. This is 38%. We bounced off the 50%. I knew if we got candle closes above, especially hourly, above this 390.50, there was a strong possibility that we were going to go all the way back up to 390.4. My original thesis analysis and what I was looking at was a possible head and shoulder forming. So over here, the high was 390.370. So I was looking for that 390.370 to 390.4 area to possibly form a head and shoulder. You guys can see it. Unfortunately, that didn't happen. We would even hire. So now we got a bigger problems on our hands in terms of the analysis for next week because technically this is, once we broke out, we made a higher low and a higher high. This is a higher low again. So this is setting up for another higher high. And if it happens, I got it right now between 404 and 405. If we were to break this, that's going to be your target up about 404 to 405. And again, that's because we broke out of this pattern, made a high, made a higher low, made a higher high. Now this, off that 50%, was a higher low. So you have a confirmed higher low, higher high pattern, which is bullish. So going into next week, how you would use this, as long as all dips are holding this 394.20, we remain bullish for a retest of 400. But you also have resistance at 397.50. I'm about to show you how you get that resistance at 397.50. So we're going to come to this four-hour chart. Actually, it's on a weekly. I want to show you guys on a weekly how everything ties in. So from the weekly, if you take it from the all-time high, right, pull it down to this recent low. Remember, you got to go back and edit it, because these aren't correct. The original all-time high was 479.98. That's what most platforms agree on. I don't know why Webull is inaccurate here, but that is the case. 346.52. You're going to see the magic. There's the magic. 397.50. That's why that's so important. 397.50 is the 38% retracement of the entire bear market downtrend, since it started in January 2022, all the way till now, from that all-time high to the bear market low, the 38% is 397.50. So that's a very important number. The week before, you see that we had closed above it, which is why I was very uncertain on why everybody was so bearish. I understood it, but you've seen a lot of bearish sentiment. But the thing is, is we closed above that. So you see what's next, 413, that's the 50%. This week, we closed back below 397.50, which is a good thing, especially if you have puts further out, based off the weekly trendline rejection. So that's where your 397.50 comes from. That's why I'm using it. That's why it's so important.