Qazi Forex TipsIn this lecture
- What Fibonacci retracement is
- How to draw it between two swing points
- Key levels: 23.6%, 38.2%, 50%, 61.8%, 78.6%
- Using the levels as possible support and resistance
Pick two extreme points, a peak and a trough, and the tool divides the move at 23.6%, 38.2%, 50%, 61.8%, 78.6% and 100%. Those horizontal lines mark possible support and resistance.
From the lecture
Read what the chart is doing now, on several timeframes, before any indicator or signal.
How Dr. Qazi teaches
Lesson notes
How to draw it
Pick the last clear swing. In an uptrend, draw from the swing low to the swing high. In a downtrend, draw from the swing high to the swing low. The tool marks the retracement levels between the two points.
The common levels are 23.6%, 38.2%, 50%, 61.8% and 78.6%. The 50% level is not a Fibonacci ratio, but traders watch it because price often pulls back about half of a move.
Which levels matter most
Many traders watch the area between 50% and 61.8% for pullback entries in a healthy trend. A shallow pullback to 38.2% shows a strong trend; a deep one beyond 78.6% warns that the trend may be failing.
Use it with price action, not alone
- Look for a Fibonacci level that lines up with a support/resistance zone or trendline (confluence).
- Wait for a rejection or momentum candle at the level before entering.
- Place the stop loss beyond the swing point you drew from, or beyond the next level.
- Trend-based Fibonacci extensions can then help set profit targets.
Khulasa (Roman Urdu / Hindi)
- Uptrend mein swing low se swing high tak, downtrend mein swing high se swing low tak lagayein.
- Ahem levels: 38.2%, 50%, 61.8%.
- Fibonacci ko akela na use karein; support/resistance ke saath milayein.
- Level par candle ki rejection ka intezar karein.
Questions
Which Fibonacci level is the strongest?
There is no single best level. Many traders watch 50%–61.8%, and a level is stronger when it lines up with support or resistance.
Which timeframe is best for Fibonacci?
Draw it on the timeframe where the swing is clear, often H1 or H4 for intraday traders, and confirm the entry on a lower timeframe.
Is 50% a Fibonacci level?
Not a Fibonacci ratio, but most traders include it because pullbacks often reach about half of a move.
Does Fibonacci work in a range?
It works best in trends with clear swings; in a range, support and resistance are more useful.
Can I use Fibonacci for scalping?
Yes, on clear swings on M5–M15, with higher-timeframe direction.
What is the difference between retracement and extension?
Retracement measures pullbacks inside a move; extension projects targets beyond it.
Related lessons
Support and Resistance: how to draw it, and why it failsMarket Analysis
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Where to set stop loss and take profit, and when to close halfEducation 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.