Qazi Forex Tips
In this lecture
- The concept of Fibonacci retracement
- How the tool is used in forex and the stock market
- A beginner-friendly step-by-step method
- Combining Fibonacci with price action
Lesson notes
Step by step
- Find a clear trend on H1 or H4.
- Pick the last complete swing (low to high in an uptrend).
- Draw the tool from the start to the end of that swing.
- Watch the 50%–61.8% area (often called the golden zone).
- Wait for a rejection or momentum candle there.
- Stop loss beyond 78.6% or the swing start; target the swing end or an extension level.
Choosing the right swing
The most common mistake is drawing on a small, unclear swing. Use a swing that is obvious on the timeframe you trade. If you are unsure which swing to use, the setup is not clear enough.
Confluence makes the level
A Fibonacci level alone is just a line. It becomes important when it lines up with support or resistance, a trendline or a round number.
Khulasa (Roman Urdu / Hindi)
- Wazeh trend aur wazeh swing chunein.
- Golden zone: 50% se 61.8%.
- Zone par candle confirmation ka intezar.
- SL 78.6% ya swing ke shuru ke peeche.
Questions
What is the golden zone in Fibonacci?
The area between the 50% and 61.8% retracement levels, where many traders look for pullback entries.
Is Fibonacci retracement reliable?
It is a useful guide, not a guarantee. It works best with support and resistance and a confirmation candle.
Do I draw Fibonacci from wick to wick or body to body?
Most traders draw from wick to wick (swing high to swing low). Stay consistent with one method.
Can Fibonacci be used in the stock market?
Yes. It works on stocks, forex, Gold and crypto, on any timeframe with clear swings.
What does the 78.6% level mean?
A deep pullback. If price closes well beyond it, the original move is often failing.
Where should the stop loss go in a Fibonacci trade?
Beyond the 78.6% level or beyond the swing point you drew from.
Related lessons
Fibonacci retracement explained simplyMarket Analysis
Trend-based Fibonacci extension for take-profit levelsPrice Action Basics
Support and Resistance: how to draw it, and why it failsEducation only, not financial advice. Trading forex, Gold and CFDs carries a high risk of loss. Examples are for learning; test any method on a demo or in a simulator before using real money.