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!
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 .
abhijithrajan46
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Hi,
Please tell me the difference between auto fib retracement and manual fi retracement in trading view.
Thanks
kenrex
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Good info here. Just a quick question - why we can't draw the fibs vertically instead of upward/ downward pattern? thank you.
spbhatt
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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.
kusharora007
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bahute gajab
GOPALBIRADAR
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Nice and Self Explanatory.. Thank you
InvestPro_India
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Thanks for posting such knowledgeable posts.
sa664746
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very helpful for beginners.thx
Sanjeev20
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Thats a good explanation for starters. Please comment further on analysis to be done.
VijayPandya
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so far as my knowledge is concern, Fibonacci retrenchments should to draw 1 top high and low, 2 top and high, 2 top and high , like that
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 .