00:00Bro, check this out. I got these for just 2,000, man. Sounds great, right?
00:03Bro, I too got this same time, but way cheaper. Just 1,500.
00:07What? Bro, bro, how could it be, bro? This is cheating, bro.
00:12Never felt like you bought a stock at the worst possible time,
00:15only to see others buying it way cheaper?
00:17That's every trader's nightmare. Am I right?
00:20But what if I told you there's a way to anticipate
00:22where the prices might pull back and grab a smarter entry?
00:26That's where Fibonacci Retracement comes in.
00:28So what is it?
00:28Fibonacci Retracement is a tool traders use
00:31to identify possible support and resistance levels.
00:34Basically, it helps you answer the question
00:35where might the stock bounce back and where could it reverse?
00:39Here's how to use it.
00:40First, identify a trend.
00:42In an uptrend, drop from the lowest point,
00:44that is swing low, to the highest point, swing high.
00:47In a downtrend, do the opposite,
00:49that is drop from the swing high to the swing low.
00:51Now look for key Fibonacci levels.
00:5323.6%, a small pullback, trend usually continues.
00:5738.2%, moderate pullback, first sign of support or resistance.
01:0250%, the halfway mark, often a key decision point.
01:0661.8%, the golden ratio, strong reversal potential.
01:1078.6%, deep pullback.
01:12If this breaks, trend may reverse completely.
01:15Now let's look at a strategy.
01:16Example 1, uptrend.
01:18A stock moves from 100 to 200,
01:20then pulls back to 150, the 50% level.
01:22If you see a bullish candle, or rising volume here,
01:25this could be your smart entry point.
01:27Example 2, downtrend.
01:28A stock falls from 500 to 300,
01:31then bounces back to 380.
01:33That's the 38.2% level.
01:35If bearish signals appear, that's a chance to short.
01:37So if you're looking to enhance your trading strategy,
01:40start using Fibonacci retracement.
01:41But remember, it's a tool to guide you,
01:44not a guaranteed success.
01:45Keep practicing, manage your risks,
01:47and happy trading with Navia.
01:48Investments in securities markets are subject to market risk.
01:51Read all related documents carefully before investing.
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