Negative Fibonacci

The Fibonacci Retracement with negative levels is used to produce price levels that are external to the range you are measuring.

Negative Fibonacci levels can be used to identify additional confluence for trade entries, targets and take profit levels.

For example:

While in the past it has been possible to trade off these levels alone, it is not a good idea.

Always seek to find several factors of confluence to increase the probability around your setup.

Time Stamps

1:43 – XRP Previous COTW (DO NOT TRADE THIS)

19:28 – NEGATIVE FIBONACCI TOOLS

• Another level of confluence
• For moves that go external from Fib pull range
• -0.236, -0.618, -1, -1.618
• It gives you potential take profit targets (TPs)
• With standard Fib pull you find resistance, with negative you find potential target for the short or potential entry for the long

45:20 – Q&A

• For ATH, Daniel would use Extension, Volume, Pitchfork, Gann theory. He does not short them though, just takes profits. He always looks for confluence, of course.

1:14:58 – BTC TA and Q&A