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How to Draw Fibonacci Channels

Education
BINANCE:ADAUSDT   Cardano / TetherUS

Fibonacci Channels are used to determine fibonacci support and resistance levels within an identified trend.

These channels can easily be drawn in both uptrends or downtrends to find potential areas where price action could change.

Uptrend
When drawing a Fibonacci Channel on an uptrend, a clearly identified trend needs to be established with higher lows being created.

To draw the channel, first select the two low points on the trend, and then the high point in-between them.

After the channel is drawn, the Fibonacci levels calculated can be used to help speculate price action by watching these areas as support or resistance.

Downtrend
When drawing a Fibonacci Channel on a downtrend, a clearly identified trend needs to be established with lower highs being created.

To draw the channel, first select the two high points determined by the trend, and then the low point in-between them as shown below.


Do you use Fib Channels?
If so, share your ideas in the comments below!
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Comments

Hello There ,
Good info. but just one Q ..how is this different from Trend based Fib Extension tool within Tradingview ...& can either one of them be used to get the same result or this will have a different usage .just trying to understand how both can be used in which situation ? Thanks for your input in advance .
+51 Reply
Hi,

Please tell me the difference between auto fib retracement and manual fi retracement in trading view.

Thanks
+33 Reply
Good info here. Just a quick question - why we can't draw the fibs vertically instead of upward/ downward pattern? thank you.
+9 Reply
bahute gajab
+5 Reply
Can you pls elaborate on your remark 'although this point is lower than low point 2' in the first chart? How does one identify which one is the correct low to pick? Thanks.
+4 Reply
Nice and Self Explanatory.. Thank you
+2 Reply
Thanks for posting such knowledgeable posts.
+2 Reply
very helpful for beginners.thx
+2 Reply
Thats a good explanation for starters. Please comment further on analysis to be done.
+2 Reply
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