Road To Profitability: Fibonacci Retracements

Video

Road To Profitability: Fibonacci Retracements (YouTube)

Key instruments / assets mentioned

• NQ / MNQ (Nasdaq 100 futures; MNQ referenced as the specific losing trade — “down 350 on MNQ”)
• Gold (example to apply the method)
• Generic structural elements: fair value gaps (FVGs), order blocks, volume imbalances, PD arrays / imbalances

Primary tool and recommended settings

• Tool: Fibonacci retracement
• Recommended levels: 0, 0.25, 0.5, 0.62, 0.705, 0.79, 1
  • Presenter noted two 0.62 entries in their chart settings (not necessary)
• Anchoring:
  • Bullish swing: anchor from swing low → swing high
  • Bearish swing: anchor from swing high → swing low

Interpretation of levels (practical guidance)

• 0: top or bottom of the swing (anchor point)
• 0.25: shallow retracement — generally not actionable for the presenter
• 0.5: “equilibrium” — used as a key reference (above = premium, below = discount)

• OTE (Optimal Trade Entry) zone: 0.62, 0.705, 0.79

  • 0.62: primary entry / most-used OTE level
  • 0.705: midpoint of the OTE zone; for deeper retracements
  • 0.79: deepest acceptable retracement using this method — beyond this level the setup is likely invalid

    “If price goes any further … you’re cooked.”

• Market behavior: price tends to become more reactive (wicks, reversal pressure) the deeper it reaches into the OTE zone

Confluence and high‑probability setup criteria

• Align Fibonacci OTE levels with one or more of:
  • FVGs (fair value gaps)
  • Order blocks
  • Multi-timeframe FVG alignment (hourly, 30-min, 15-min, 5-min) increases conviction
• Volume imbalances / imbalances are common take-profit targets
• Wait for price reaction (wick/reversal) and entry confirmation — do not enter solely on the fib level

Step‑by‑step framework the presenter uses

1. Identify a swing range (high ↔ low).
2. Anchor the Fibonacci accordingly (low→high or high→low).
3. Mark OTE levels (0.62 / 0.705 / 0.79) and the 0.5 equilibrium.
4. Check for alignment with FVGs/order blocks (multi-timeframe alignment raises probability).
5. Wait for price reaction at the aligned level (wicks/confirmation).
6. Enter with position sizing and risk rules (presenter enforces internal rules, e.g., one trade per day to the same draw).
7. Target volume imbalances / imbalances for take-profit.
8. Accept model‑valid losses when they occur (losses that follow your system are considered acceptable).

Key numbers / timelines / trade outcomes

• Fibonacci levels: 0, 0.25, 0.5, 0.62, 0.705, 0.79, 1
• Example outcome: stopped out ~350 loss on MNQ (micro e-mini Nasdaq 100). Presenter noted the TP would have been at a volume imbalance, but price re-swept the high.
• Timeframes referenced for FVG alignment: hourly, 30-minute, 15-minute, 5-minute

Tactical observations / price behavior

• Candles often wick through OTE levels (especially 0.705 / 0.79) and then reverse — valid setups usually show a wick and then a turn rather than a candle close through the level
• Deeper retracements tend to attract more buyers and show increased reactivity

Explicit recommendations / cautions

• Use the recommended fib levels and settings; align OTEs with FVGs for higher probability
• Avoid taking entries at the shallow 0.25 level (not reliable in this method)
• If price moves beyond 0.79 OTE level, treat the fib-based setup as invalid or low-probability
• Wait for reaction/confluence/entry confirmation — do not take early entries
• Accept model-following losses as part of the process (a “model-valid loss”)

Performance / risk management notes

• Presenter enforces trading rules (examples: one trade per day to the same draw, strict position sizing)
• Take-profit levels are often aligned with volume imbalances
• Psychological acceptance of model-valid losses is emphasized

Disclosures / resources

• No explicit “not financial advice” wording shown in subtitles
• Additional resources and settings mentioned: Discord (discord.gg/precision) and Instagram for other rules

Presenter / source

• Single host/presenter (refers to himself as “Hus” in passing)
• Video title: Road To Profitability: Fibonacci Retracements (YouTube)