I found a strategy Quotex Course/ Quotex Course Pdf Download, so good that if you use it correctly, it can not only predict the exact point where price is going to reverse, but it can also find the perfect places to set your take profit. And all of this is done by using the Fibonacci retracement tool.
You probably have heard of it, but unfortunately, most traders use it completely wrong. I’m going to show you how to use it correctly and give you my secret settings that I use for it. On top of that give you a strategy that will give you sniper entries and huge profit.
First, you’re going to go to Trading View. You’re going to go to the left category bar. Click this second icon. This will give you the Fibonacci tool. Place it on your chart.
Settings for Quotex Course
Go to the settings. Change the values to 0, 0.706, 0.618, 1, and 0.79.
For binary
Trade Time: 5 to 10 Minute
Chart/ Candle Time frame: Discussed Below
For Forex
Follow instruction as we will discuss in this topic.
This will give you three main levels that look like this. These levels are what’s called the golden zone or where price has the highest probability of pulling back to and reversing.
So in essence, you would normally use the Fibonacci as follows. You grab your Fibonacci tool, you mark from the low of the trend to the high of the trend. This will mark out your level. Price will often come back down and have the highest probability of reversing at the golden zone. Set your stop loss below the golden zone. Set your take profit at the highs. And now you have a trading strategy that works pretty decent.
But here’s the thing. This strategy is nice and all, and if you test it, it does work pretty often, but you will also quickly figure out it doesn’t work all of the time. And sometimes price will just break the golden zone, and you’re left with a losing trade that hit your stop-loss. So, we need to figure out a way to raise the probability of our setup so the golden zone holds way more often and we get way more winning trades. To do this, I have created a five-step strategy that will make the Fibonacci tool work so good. And once you replicate this strategy on your charts. To start us off, we’re going to start with the first step, which is finding a high interest area. Now, there are multiple ways to find a highinterest area, but this is my favorite way of doing it. First, you want to go on a higher time frame, like the 4hour or daily time frame. For this example, we’ll be using the 4hour. Next, you’re going to find a fair value gap. You can have bullish fair value gaps and bearish fair value gaps. A fair value gap is simply a three candle formation where price moves up or down an insane amount, creating a huge candle. In this example, the price moved up so quickly that it didn’t give sellers enough time to counteract the movement, creating an imbalance in the market. Naturally, sellers will want to retest this zone. You can mark a fair value gap by simply marking the candle’s top wick before the big move to the candle’s lower wick after the big move. This zone is the fair value gap itself. If you open up your chart, you will see these gaps everywhere.
Often times, especially on higher time frames, price will retrace back down to this zone, fill the imbalance, and retrace back up to test the highs again. Which, if you’re thinking like I’m thinking, we can use this to our advantage and profit solely from this idea. So what you want to do go on the 4hour time frame and simply find a high interest zone or in other words find a fair value gap. This is just an example but usually the gap will be somewhere in this area. While price comes down to this gap it’ll normally do something that looks like this. Creating lower lows and lower highs. Brings us to step number two of our five-step formula. Finding liquidity on a lower time frame. This is where price sweeps a low before entering our gap. Liquidity is basically just open orders in the market. Naturally, there will be a lot of stop losses below these lows, which in return provides liquidity and we can take advantage of the losers in the market. So, after you find your high interest area, you’re going to go to the 30 minute time frame. Price should be breaking a low to provide liquidity before entering into our high interest zone. Something like this where price breaks this low before entering into our zone. Once it does that, it should hit our high interest zone. And we move to step three, which is finding a change of character. We want to confirm that our high interest zone is strong. And the best way to do that is we want price to bounce exactly at our zone and then break the previous high. This will give us our change of character and confirms that our high interest zone is valid and bullish momentum is starting to occur.
Once we get that, we move to step number four, which is actually placing our Fibonacci tool. You’re going to mark from the low in the high entry zone to the high of where the change of character is. This will mark out our Fibonacci sequence, but even more importantly, it’ll mark our golden zone, which gives us the most optimal area for a potential reversal. We want to wait for price to come back down to our golden zone.
And then we move to the final step, which is entering the trade. Once price hits our golden zone, we can set our stop loss and take profit. What I like to do is enter right at the 71% level, set my stop loss below the most recent low, and set my take profit at the top of the range. Now, this is the beginner way of doing things. I do have a secret trick where we can optimize our take-profit even more to get better TP levels and increase our risk-to-reward, but we’ll get to that in a little bit. Let’s do an actual real life chart example using this strategy. So, first things first, first go to the 4hour time frame. We want to find an uptrend. During this uptrend, there should be a high interest area or a fair value gap here. There’s a beautiful fair value gap right here. So, we’ll mark it on our chart. Next, move to a smaller time frame. I personally like the 15minut for this. As you can see, we have a fair value gap still printed from the higher time frame. As price comes down, it creates a nice liquidity point right here. Price breaks this liquidity and enters into our gap. When price is in our gap, we need it to break the previous high, giving a change of character. Let’s see what it does. It does end up breaking the high, confirming that our fair value gap from the 4hour time frame is strong. Once this happens, grab your Fibonacci tool, mark from the low where it swept the liquidity to the high that created the change of character. This will mark our golden zone, where we want price to retrace to. You’re going to want to enter as soon as price reaches our golden zone. Set your take profit at the high of where the change of character happened and set your stop loss below the low of where it bounced at the fair value gap.
It bounced perfectly at our golden zone and hit our Take profit. That’s the power of this strategy. I really want you to notice how price bounced exactly when it hit our golden zone. That’s the power of this Fibonacci tool. Let’s do one more example so you really get a feel for this strategy. We go on the 4hour time frame. First, find an uptrend, and then find a fair value gap in that uptrend. Once you find that, move to a smaller time frame. As price starts coming down to our gap, it creates this low or in other words, our liquidity before the gap. Price ends up grabbing this liquidity before entering our gap. Then it enters our gap. Next, we want to see a change of character to prove our gap is strong and will hold, which is exactly what happens by price breaking this high. Once that happens, we grab our Fibonacci tool, mark from the low in our fair value gap to the high of where the change of character is. This will provide us with our golden zone. Wait for price to come to our golden zone. Set your take profit at the high. Set your stop loss below the low.
And again, notice how price bounced exactly when it hit our golden zone. I love this Fibonacci tool. It might be my new favorite tool. But one thing I really want you to notice, if we go back to our example, you can see our take profit and stop loss. In this specific example, we only had a 2:1 risk-to-reward ratio, which is good, but it’s not great.
Well, that’s how you use the Fibonacci tool. Try it out. Let me know how it works for you.
Do you want to see my secret trick on how I improve my risk-to-reward with this specific strategy, so we get huge wins just like this one? Comment me and I will make a detailed post on this topic. And for more strategies follow us.
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