Good evening, good afternoon.
How's everybody doing?
Let's give it a moment as everyone starts coming in.
The mouse should be better this time, the audio should be better, and everything should
be great, everything should be great.
We'll give it a bit to let everybody in.
Just to let you guys know, once there is 1,000 people, it's going to become very difficult
to get into this room.
We are now live on urbanforex.com, and we are also live on YouTube so, welcome everybody,
welcome.
How many of you guys are here for the very first time?
Is the audio okay?
No, no it's not bourbon Andrew, this is just water, just water.
I don't know if I can tilt my cup enough to show you.
All right, welcome, welcome.
Okay, it looks like the audio and video is good, audio and video is good.
All right, let me do this, let me get some of this stuff out of the way.
Boom, boom, boom, all right.
All right, okay, okay.
No kick today guys, no kick today.
All right, so first things first.
For those of you guys who do not know me, my name is Navin Prithyani.
I am the senior trader at forexwatchers.com, I mentor and coach over at urbanforex.com,
and your host today at this live event.
I want to take a moment to thank all of you guys to come out here.
I know a lot of you guys have taken time off of your work or off of your busy schedule
to be here.
Having said that, let's please respect that time.
Turn off your cell phones, the dog goes into the other room, the spouses go into to the
other room.
I want you to focus
We're here to talk about Fibonacci today.
It's an hour long event.
We're going to go straight into it, no nonsense, it's what we do every single time in all of
our webinars.
We're going to make sure you learn something immediately.
All right, now as we begin, where are all you guys from?
Where are you guys logging in from?
Where are all of you guys from?
I do see a lot of you guys saying it's your first time.
Welcome, welcome Robert, welcome Pound.
All right, where are you guys from?
Where are you guys from?
Let's see it.
We got Australia, London, Italy, Dubai, Texas, Malaysia, Singapore, Denmark, Athens, North
Carolina, South Africa, Netherlands, Honduras, Romania, Germany, Curaçao, Nigeria, Namibia.
Welcome, welcome guys, welcome.
Oman, Lesotho, Canada, Bangkok, Croatia.
All right, great, great.
I'm seeing some countries here I've never seen before.
Some of you guys are in Hong Kong right now, great.
Nepal, all right, excellent, excellent.
We got all of you guys from all around the world.
Again, thank you for being here.
It is now four minutes into the webinar, let's dive straight into it, let's dive straight
into it.
Today's hot topic is about Fibonacci.
Fibonacci is something that's very, very attractive to many, many individuals, many, many individuals.
Let's start with the basic question.
What is Fibonacci?
Is it some Italian pizza?
Is it someone's last name?
You know, someone from Italy?
Basically Fibonacci is a dude who came up with a mathematical sequence saying not many
things can go in a straight line without retracing.
The laws of the universe follow a numerical pattern.
You'll see this in pineapples, you'll see this in other walks of life, you'll see this
in the universe.
In many different things, you'll see the world reacts to a mathematical pattern over, and
over, and over again.
That's the core basics of what is Fibonacci?
The question comes to mind for many traders who would like to have that extra spice.
You know how those people who go to gambling and they're like, "I've brought my special
doll with me, this doll gives me a good look."
So, a lot of people enter the market of trading thinking, is there something I can use right
now to suddenly magically become the best trader there is?
Can I immediately use something so I can magically become the best I can be magically?
There is a mathematical sequence.
However, the question comes is, can we use it, and how?
Can we use this and how?
You can decide by the end of this webinar, is this Fibonacci tool going to be useful
for you?
I'm going to even give you a strategy on how you can approach using it and what times you
should not use it.
Two different things, two different things, all right?
Having that said, so in a nutshell, basically Fibonacci is saying nothing can go in a nonstop
sequence without pulling back.
Sort of like Will Smith movies, right?
You'll make great movies, great movies, great movies and then Hancock will come out and
everyone's like, "Argh!
Seriously?"
Then he's back to the top again.
That little retracement comes back to a certain number of degrees of retracement before the
market continues.
Having that said, we're going to see, does this mathematical sequence also apply to your
trading and can you use it in your trading on a day to day basis?
So, let's get right into that.
I'm going to go ahead and shrink my head, okay?
I'm going to shrink my head and I'm going to give you the background here.
Let me move this down here, okay.
Okay, that should be pretty decent.
Now, you guys can still see my screen in the background and you can see my face and you
can see the chat and everything?
Let me change the size of this to a little bit skinnier right there.
Okay, okay.
All right, welcome Agent Billy and Bob.
Always good to see you, Wicked Sunny.
As I go into this, as I get the chart ready for you I want you guys to let me know, how
many of you guys here are already Mastering Price Action students?
How many of you guys are already Mastering Price Action students?
Let's see that so I can know how many of you guys are absolutely new, versus how many of
you guys are actually returning students.
Let me get this up for you here.
So, let's open up, let's say EURUSD and let's get in a Fibonacci marker.
If you're using trading view, on your third icon down, you can click on this button there.
Wait, let me make the mouse bigger for you guys so you guys can see where I'm pointing
at.
Okay, there's a ton of you guys from the Mastering Price Action.
Some of you guys are all the way up at the elite level.
Welcome, welcome.
Okay, excellent, excellent.
Good to see you guys.
I need to get a poll up in here next time so I can know the percentage of you guys,
but good to see a lot of you guys are returning.
All right, here we go.
Let's have a look at this with the mouse.
Let me get the mouse up.
Accessibility, display, all right, there we go.
Look at that mouse.
So, if you're using trading view, your third icon down on your left toolbar, you will see
something called Fibonacci retracement.
That's the tool you want to be able to use.
If I click on that, you're going to have to choose a highest point in a downtrend, you're
gonna have to choose a highest point and take it down to your lowest point, and you will
start to see the retracements accordingly.
Let's say if that's your highest point there, right here and that's your lowest point there,
according to the rules of Fibonacci, you have a reactionary number at 23.6%, 38.2%, 50%
and 61.8%.
Obviously this goes even further beyond if you take it out to 1.618, it goes even further
beyond that.
But generally speaking for retracements if you're doing trend trading, right?
If you're doing trend pullback trading, these numbers are basically your best friends that
you want to be looking at.
If you can see, the market in this particular downtrend reacted from 38.2%, and then it
started to go back down.
Now wait a minute, this sounds so easy.
It's almost like, all right, so Navin, all you're telling me is I have to draw this little
rainbow cake on my screen and when we start getting a couple of colors in we sell and
then we go and buy the Ferrari?
It's so simple.
My God, why couldn't I think of this before?
Unfortunately, hold your horses.
This is how everybody gets trapped into Fibonacci.
I want to pull you out of that trap.
Okay, calm down, calm down.
Here's the thing okay, here's the thing, just like anything else and in trading, yes the
Fibonacci numbers work.
However, how you draw the Fibonaccis will make the complete difference.
What if you were to say, I can see that the market was holding, holding, holding, holding,
holding, and this is just a faker.
That means this is my highest point, and this is just a faker as well.
This seems to be my lowest point.
Ah, now you will draw your Fibonacci from that highest point to this lowest point.
Look at that, that means a retracement comes absolutely perfectly to 50%, and then it reverses.
Whoa Navin, what is this magic you're doing on the screen over and over again?
Yes, by coincidences, all of these numbers keep reacting, but the evolution of okay,
how should I draw this?
I know they work, I just am drawing it wrong.
How many of you guys here feel that you've been victim to that as saying, "I know they
work, but I just don't know how to draw it correctly.
I know they work, sometimes it's worked perfectly for me, but I just don't know exactly how
to do it."
How many of you guys have that experience that you've tried it, you understand what
is Fibonacci, you understand that it's a mathematical law of the universe that the markets will
react to it as well, but we just don't know exactly how.
We just don't know exactly how.
Now, here's the next question, what if you hit yourself?
Where do you put your stop loss.
That's the next question.
The dreadful question of, I know it's going to react, I've seen it time and time again,
I've seen Navin draw this colorful rainbow and in that rainbow, it always reacts from
one of these universal numbers, one of these universal numbers.
Let's have a look at another example for a case.
So now, how did I know to draw from here to here?
What about after that?
Do I draw from here to here?
Okay, let's do that.
If I draw from there to there, what do we got here?
Let me zoom in a bit.
Whoa, 61.8% exact reaction and it's turning around.
Again, let me ask you a question, how come this time it didn't go to 38.2%, 50%?
Why did it go to 61.8%?
What if you blindly hit the sell at 50%?
How would you know?
But, it does react, and this is how many unfortunate people going into Fibonacci get stuck.
They look at how it reacts perfectly and they start pursuing the Fibonacci career with no
background to, how should I use this tool to assist me, not give me the final verdict
of hit the cell, hit the buy?
Does that make sense?
Let's see some of these things you guys are saying?
Bongumusa you're saying, "I never ever tried it.
I am curious.
I'm like a curious dog trying to find out what's going on with this indicator."
Pippy Monster you're saying, "Ryan Ang, I know things need to be learned but I want
to know so I don't waste my time."
Okay, okay.
Chi you're saying, "I tried, I know, but I don't use it."
Okay, and Pound is saying, "I dislike it now."
Fair enough, fair enough.
Let's take it a step further.
Now, you've reached a situation where you are now watching the markets here.
You're watching the markets here, and I'm going to squeeze the market right there.
You're going to say, "Hmm, the markets went down from this highest point to either this
lowest point, thereabouts."
What happens when you draw that?
Right now I'm just giving you the problems, problems, problems.
I want you to focus on the problems not on, look at how much money I could've made if
I hit it up to 50%.
Look at how much money I could've made if I hit it at the 61.8%.
That is a trap, be careful.
If you draw it from here, this top price to this lowest price and then I extend it out,
and then I extend it out like that, how would you know to hit it for a sell either here,
or here, or wait for this price?
How would you know, and where would you put your stop loss?
It reacts from all those areas, but where would you put your stop loss?
That's a constant stop loss over and over again if you're mentally thinking, I need
to sell, I need to sell, I need to sell.
So, we've gone 15 minutes into the webinar.
You understand now what is Fibonacci, you understand now why everybody is attracted
to Fibonacci.
Everyone's attracted to Fibonacci, because they can see the market react from these wonderful
special numbers.
Now the question is, how do you make money from it?
That's the bottom line.
If you ignore that bottom line and you say, "Yes, but it's a mathematical sequence and
the world has to follow the sequence," yes, how do you make money from it?
If you can make money from it, hey, physics says so many things.
What's your point getting into the Forex market and just wasting your time?
You need to really dig deeper and be like, "What is in this for me?
How can I use this information to make a profit, to turn a profit?
All right, so, everyone with me up until this point?
We have a wonderful tool that comes with a double edged sword of that dilemma of when?
I am not sure.
How?
I'm not sure.
Stop Loss?
I am not sure.
Now, there's tons of strategies on the internet that will tell you, you need to draw one Fibonacci
this way, the other one Fibonacci the other way, and then another Fibonacci this way and
when you have 30 Fibonaccis on your screen, you have been better informed.
You don't want to do that.
You don't want to do that, it's only going to confuse you more because everything will
look like it's working but in reality, you aren't able to extract profits from it.
That's a problem, that's a huge problem.
Now, let's get into it.
Let's get into it.
Okay, let's get into it.
Before you use your Fibonacci, you need to understand the elements that move a market,
okay?
You need to understand the elements that move the market.
So, what we're going to do is I'm going to walk you through a little bit of price action
and with that price action, you can then bring in your tool of Fibonacci and be like, "Ah,
it all makes sense now.
Now I can see how I can better use this."
I'm going to give a little bit of education, at the same time it's going to be like a strategy
where you can use your love for Fibonacci for this.
I'm not saying you have to throw it away, I'm not saying you can completely disregard
it.
You can use it, but let's be a little bit smarter about it with it.
You don't need to ignore it.
It's beautiful, it looks nice, let's be a little bit smarter about it.
It's taken a lot of money from a lot of students, it's time you rectify that, it's time you
rectify that.
We'll continue to look at this chart since you guys are already aware with this.
We can switch charts to another chart in a little bit and we can choose any other pair.
This is the live markets right now, so let's take a look at this in different scenarios.
A couple things, you always want to be aware of few factors.
One is, how do you know what is your top?
How do you know what is your bottom?
This is very important, very, very important.
If you don't know your top and you don't know your bottom, you don't know how to draw.
You don't know how to draw Fibonacci.
You will be drawing at random wrong places.
I'm going to give you the biggest secret of trading today.
As always, there's always wonderful information on webinars, and then there's one gold mine
in there.
Okay, you guys ready for this?
You need to love ranges.
Let me repeat, you must love ranges.
One more time, you must love ranges.
Let me show you, let me show you.
Ranges, whenever you have a sideways movement, whenever you have a sideways movement, that
is a sign of a larger player building up his positions piece by piece, piece by piece,
piece by piece.
If everybody, look at this market here.
If everybody is looking at this market right here, what do you think is going on to people's
mind?
All the MAs, which is moving averages, they're going up.
All the systems, they're going up.
All the divergences and everything, they're going up.
Every Tom, Dick and Harry on the planet is saying, "Well, the market's in an uptrend,"
and the trend is your friend, and you go keep going, never swim against the wave.
So, everyone just gets on to the buy, and the buy, and the buy, and the buy.
Now, here comes the issue.
Along the way when you're doing your buys, things start to slow down, things start to
slow down.
You never have an uptrend that will immediately turn into a downtrend.
It needs to transition, it needs to transition.
Think of it like, if I don't have my rainbow, the arch, the market cannot turn into a pyramid.
It will not turn into a pyramid.
It needs that arch to turn the market.
So far, so good?
Everyone with me so far?
I'm going to explain it.
Right now you're understanding the theory, I'm going to show you on the charts.
Prasad you're saying, "Sorry for the delay."
You're late to the webinar?
No, I'm just kidding.
It's okay, welcome.
It's all recorded as well, so it's going to be available for you to watch even when the
recording is over, don't worry.
So, things need to go sideways.
Whether you call it a range, you call it a rollover, you call it a consolidation.
Whatever word you want to call it or whatever word your guru or mentor might've given to
you, you're looking for some kind of sideways action, sideways action.
All right, now here we go.
To understand the top of the market, you must understand where the sideways action is.
Once you get that sideways action, you can then determine the movement of the markets
to a certain way.
However, here's the idea, the market goes up ... Always draw your extremes.
I'm going to give you a quick hack, draw your extremes.
He goes up from here to here, draw it there, then it goes sideways.
Then he breaks it, draw it, then he cannot break it, it's fake.
He's still going sideways.
Remember, he came from down here.
Don't get panicked by these big red bars, it's still in the buy, it's still in the buy,
keep going.
Then he gets up to here, makes a brand new high, turns.
He started the movement from here this time.
It's still in the buy.
Don't forget, it's still in the buy.
He starts coming down.
Don't forget, it's still in the buy, it's still in the buy, it's still in the buy.
And then he crosses it, and now it turns the market.
Only now it turns the market.
You're looking for that transitional period.
If it goes below that and there was no transition, no sideways action, the market didn't create
a top.
The market didn't create a top.
Let's slow it down a little bit so you guys can understand.
I know there's a lot of information I've just thrown at you and a lot of it's like ... and
you're like, "I have no idea what this brown guy on the screen just said.
He just said something about a line and a transition, and that supposedly that's the
best thing on the planet."
Let's slow it down, let's slow it down.
All right, since this moment when the buyers went up, were they able to make a higher high?
No, but did they make a lower low from that point?
No.
This is your transitional period.
You cannot look at these minuscule areas and saying, "Oh, but that's a higher high, oh,
that's a lower low."
You get into that trap, you're done for.
You need to look at extreme areas that hold, and then the markets just play within that
hold, within that hold.
You want to make sure you grab that hold area.
You want to understand, where is that hold happening?
That hold, when that turns, it tells you it put in the top?
Same thing, the markets are going down, down, down, down, down, down, down, down, down,
look at how fast he comes up.
That's not your bottom, that is not your bottom.
Where's your transitional period?
It's too fast, it's too fast.
The markets do not turn from triangles, either this way or that way.
They need that rainbow looking arch.
If you have to remember this, it's not a not this, it's more this, okay?
No sharp edges, smooth it out, smooth it out.
Sharp edges attract gamblers.
Something happens quickly, all the gamblers jump in, "Oh my god, oh my god, oh my god."
So, think about it.
If you have this emotional feeling of, "I got to get in, I got to get in, I got to get
in," it's moving so fast, then it must be a dangerous place get in because a lot of
people are losing money that way.
So, the opposite must be true, than in a calm market where it's going sideways, it must
be the safest thing to do.
But it's boring.
It's sideways, it's boring.
Unfortunately, that's where the money is, that's where the money is.
You cannot ignore the sideways action.
If you ignore the sideways action, I can promise you any mentor you follow that tells you,
"Do not worry about ranges, ignore ranges," I can tell you right now, you will fail.
I will promise you right now, you will fail.
Be very careful, be very careful.
All right now, once you know this is your top area here, now we're looking for, yeah,
but this is not our bottom because we didn't have a transitional period, so where's my
bottom?
Where is my boss?
It sounds like I'm saying, "Where's my ass," right around here.
So, where is my bottom part of this downtrend?
It keeps going down, down, down, down, so ... Extreme areas, let's do this.
He pulled back up here, he held, but it's such so tiny pieces, such a tiny pullback.
Give me pullback, there we go, we got a hold.
We got a hold and since then, no lower low, no higher high above that area.
And, this is the lowest point since then.
You must mark this area and be like, "No higher high, no lower low.
It's putting in a bottom, it's putting in a bottom."
It's putting in the bottom.
Now, as we're watching this thing, he is now starting to go down a bit trying to make lower
lows, and then sideways, sideways, sideways, sideways, sideways, sideways, sideways, sideways,
sideways, sideways.
You have now put in your bottom.
You have your upper point here, you have your lower point here.
How many of you guys knew how to draw Fibonaccis before today?
And, how many you guys had an aha moment even if you don't use Fibonaccis and you're like,
"Ah, I didn't know that, that that's the bottom and not this one."
You will have to get good at learning where the turns happen in the market.
If you don't know where the turns are happening in the market, everything you're going to
do is nothing but a guess.
And when you're guessing, your emotions will be so high in each trade and you're going
to start thinking, "I have a problem with my psychology, I have a problem with my psychology.
Let's read all the psychological books there is to read."
You don't need to fix your psychology, you need to fix how you read the market.
If you fix how you read the market, your psychology will calm down because you'll know what you're
doing.
Yes or no, do you guys agree or not?
You can't keep blaming it on your psychology over and over again.
Your brain just does what you tell it to do.
Okay, all right.
Okay, there we go.
Some of you guys got some aha moments.
Okay, all right, good, good.
Now, let's get in a little bit deeper, a little bit deeper.
We're going to go through more examples, don't worry, don't worry.
It's not going to be confusing, we're going to more examples.
To do this well, you got to be a little bit better with your price action.
If you don't have a price action background, it becomes very, very difficult, because then
you're working with a system and when you work with a system, you're at the mercy of
mathematics, which means it is a numbers game for you going forward.
And if it's a numbers game, you cannot have emotions at all.
That's why all these people who are trading automatic robots are getting more and more
attractiveness to it because people are saying, "But it removes my emotion."
If you're a trader and you want to trade, you need to fix your price action read.
That's the damaging piece that's missing with a lot of students, it's missing with a lot
of students.
So, let's go into this, let's go into this.
I see a question here saying, what is price action?
Price action is, you're just simply reading the price as it's going down and you're trying
to understand what the players are trying to tell you, what the players are trying to
tell you.
Then you determine what you should do accordingly, not forcing the market to do what you want
it to do because it can't.
It doesn't know what you're thinking, so you can't force it.
All you can do is adapt to it.
Does that make sense?
You can't just draw a line and expect the market to react from that little, you need
to observe what happens around that line.
What do you do once it reaches that line?
What happens there?
You can't blindly hit a sell, you can't blindly hit a buy, you need to see what happens there.
You see what I mean?
So limit orders, stop orders, sell orders out the window, boom.
You can only go about this with the idea of, I know what's happening, I know what's happening.
Then you can do a limit order because you're like, "I just need one little extra push,"
one little extra push.
Okay, going back to price action and drawing your Fibonaccis here.
Now that you know your highs and your lows, so you're like, "Okay Navin, let's say I understand.
You're telling me that this is the high, and that's my low down there."
Okay, now I have an area of 23% here, I have an area of 38% here, I have an area of 50%
here, and 61.8% here.
I'm going to remove the Fibonacci, and I'm going to ask you a question now.
So, you got your lines, what now?
What now?
Do we put a sell order here?
The moment it touches this we just blindly sell it?
And then we put our stop loss where?
Maybe above this purple line, sounds logical.
Or, should I sell it here?
Or, here's what we're going to do, we're going to do a mathematical formula.
We're going to sell a little bit here.
If that fails, we're going to sell more here.
You know what, just donate your money.
Go to the nearest donation center, just give your money there.
You'll help somebody and it'll be for a good cause.
You know what I mean?
You got to be careful with these things.
You got to think one more step ahead.
If you're going to be in this market and expect to earn more money than doctors and lawyers
combined, you can't do a little bit more work?
But the problem is not the work.
Everyone here I'm sure is willing to do the work.
The problem is the knowledge and education is all wrong.
Do you guys agree?
I don't think a single one of you guys in here is not willing to put in the work.
You guys are here in a webinar willing to sit through an hour long webinar to learn
more, and God knows how many other webinars you have seen before approaching to this one.
You guys are looking to take it another step further so the work is there, the education
quality is not there.
Let's fix that, let's fix that.
All right, so let's have a look at this, let's have a look at this.
Now you're looking at this as prices are going up.
Price action teaches you one thing, you want to remember one thing here.
You have all these lines here, you have all these lines here.
Prices went down from here.
Listen very carefully.
What I'm about to tell you is a golden goose, okay?
I don't know how else to get your attention here.
This is the secret formula to life, this is the golden cup.
Listen carefully, listen carefully.
Prices start to go down from here, they reach this lowest point, and then they pull back.
I want to ask you one question, since that price, do we have a lower low?
Do we have a lower low?
All of you guys saying, "No, we do not have a lower low."
That means the larger player, now I'm going to bring you to a little bit of logic.
I want you to use your brains a little bit for this, and I'm going to guide you through
it.
Over here, there are buyers.
Remember the whole public, everybody, every Tom, Dick and Harry was buying, they're buying,
they're buying, they're buying, and then the big boys step in and they quietly take all
the buy orders, they sell.
They take the buy order, they sell to them.
Whoever wants to buy at this expensive price, the larger players are like, "Oh, good, good,
good, very nice.
Sell it to them, sell it to them, sell it to them."
But the big boy does not play with one mini lot.
He does not play with one standard lot.
He does not play with a small hundred standard lots, he plays with something much, much bigger.
So, if everybody is buying mini lots, and micro lots, and standard lots and all this
stuff along the way to the upside, can he hit $1 billion for a sell all at one shot?
Answer that question.
Can he hit $1 billion for a sell in a single go?
If he does that, it will offset the market because the buyers might only be 100 million.
If the buyers are 100 million and the sellers are 1 billion, it will do this, it will offset
the market, it will slide away.
And the further the market slides away, the bigger the loss of the larger player.
You and I make money on these nice movements, right?
You and I, we make money on these nice movements, the big boy doesn't.
The big boy loses money on these movements because he didn't fill in his orders and the
prices are slipping away, and now people are willing to buy at this crappy price down here.
That's bad business for him.
That's really bad business for him.
So, he will stop the selling.
Once he stops the selling, the buyers come back.
They were saying, "Oh, there's not enough supply.
There's no one selling iPhones anymore at such a low rate.
Okay, well I'll pay $10 more, can I get it?"
The next guy will say, "No, I'll pay $10 more than him.
Can I get it?"
And the big boys starts feeling the market and saying, "Where's the next level that they're
willing to buy until?
Where's the next level they're willing to buy until it gets up to here?"
Does the big boy hit his half billion dollars or $900 million and he sells again, does it
come crashing down and make new lows?
Is he bleeding?
No.
If he's not bleeding, understand one question and one theory.
This highest price when it pulled back could not make a lower low.
That means, that price was not good enough for the larger player.
He needs a better price to sell from which means whatever the Fibonacci says, you're
only going to get a decent trade out of this above this price, above that price.
That means you and I just by knowing this information we said, "Screw that line, we
don't care.
Screw this line, we don't care.
We will only monitor this line and beyond."
We just eliminated all the nonsenses along the way that looked like a beautiful area
that all Fibonacci people start salivating over.
Let them salivate.
You guys are with Urbanforex, you guys need to be a little bit better.
Do not be part of that 95%, you got to be a little bit better, you got to be a little
bit smarter.
Don't just have anyone just selling you an indicator and saying, "This is how you draw
it, good luck."
No, come on man.
You guys are better than that.
You guys are way better than that.
Looks like there's some aha moments coming in.
How many of you guys are starting to understand this and are taking it a step further like,
"Oh my goodness, I can't believe I've been wasting years and years without even knowing
this little price action hack."
Your Fibonacci, you can still use it, but I just eliminated a bunch of your Fibonacci
numbers for you using that logic.
Does that make sense?
Some of you guys had aha moments today, had some breakthroughs?
Chris Sayers, you're saying, "One more time on the final part."
Okay, we'll explain it really quick one more time, then we'll move on to the next example.
So, here we go, here we go.
We had our Fibonacci lines.
Let me get rid of all these things.
I'll explain it very slowly, very carefully.
Okay, let's get rid of all these brushes.
Okay, bam.
And, let's get rid of the volume on the bottom.
Keep it nice and clean, and all we have left is our Fibonacci lines.
Now the question comes is, you and I right now, we know how to draw the Fibonacci, we
know how to draw the Fibonacci.
Done, because we know how to pick the top, we know how to pick the bottom.
The drawing part is now solved.
That's a big issue for many folks, trust me.
The drawing part is now solved.
You need your ranges to know your top, you need your ranges to know your bottom.
No ranges, it's not the bottom or it's not the top.
You know that now.
Next question is, once you draw it from top or bottom, the question comes is, which retracement
can I use to trade from?
Which retracement can I use to trade from?
How can I know what to do?
Without even going into the technical details of price action, a quick hack will tell you
that when he went down and he stopped here, he was going down from this price.
We know he put in the top there.
Whatever top you pick, he went down full speed down, down, down, down, down, down, down,
and he put in this low here.
And since that low, not the bottom, that low, if I put my line straight across, prices have
not gone lower low.
That means the big boy who was bleeding from this move, he's still around.
He's still around and he's trying to feel the market and saying, "Come on people, buy
at a higher price.
Otherwise, I am not willing to sell to you at a very, very low price.
It's not happening, I'm sorry."
He tried selling some pieces here, came all the way down and he felt more buyers are there,
which means he didn't sell aggressively.
It just slid away from him.
He didn't sell aggressively, which means this highest price was not good enough for him.
Who makes the conditions in the market, the larger player or the market?
If you guys are thinking logically in this world, it's always going to be the larger
player that will set the tone.
We can sit here and cry about it and crib about it and go march on the streets for socialism
and all this stuff.
Reality is, you need to understand that there is a larger player behind this who is looking
at prices in a different way than we are.
This price was not good enough for him to make the price continue to go to the sell
side.
It's not good enough for him.
That means we need a price at least, at least above that.
At least above that which means this Fibonacci, out the window, this Fibonacci, out the window,
this Fibonacci, out the window.
We need to monitor this level and see what happens there.
What happens there?
So, any of these areas if you sell from, you can be assured it might bounce, but you're
going to get a stop loss.
If you enter here it might bounce, but you're going to get a stop loss.
So, how do you know when the odds are in your favor?
You need to start thinking in terms of price action, where the big boys are there with
you.
Does that make sense?
Everyone got that now, when we repeat it a couple times?
Franz you're saying, "Insights are just crazy."
I'm glad you like it, good, good, use it.
Don't just admire it, use it.
Starting today, get onto your charts, look for this kind of stuff, get better, improve
yourself.
This is what we're here for.
Chris you're saying, "Yeah, I understand fully now."
Great, great, okay.
So, let's move on, let's move on.
This is something that we can monitor and be like, "Is this done yet?"
Look at all these sells, 50% sellers, they're going to come into trouble.
That's a 50% area.
They sold, and everyone who's in Fibonacci is doing this, "I knew it.
You see, I knew it."
They're going to get onto every forum, every Forex factory, every, I don't know what other
website, T2W or whatever and they're going to say, "You see, look what I said.
And as I said, it happened therefore, I am king."
Good for you man, good for you.
But is it the correct way for me to do it over, and over, and over, and over, and over
again?
If that is not the case, there is no such thing as a good prediction.
It doesn't matter, everyone can get lucky.
So, what we're waiting for is, we know that this price range is most likely not a good
price range.
We need prices to get up to here at least before we can start admiring that the big
boys will return.
Which big boy?
That guy, that guy who was bleeding this whole time.
Will he come back to life?
That is the question.
Will he come back to life?
If around the 50% area we start going sideways, the range, the range, the range, things might
turn.
That's a whole different story.
Things can turn if you start getting that range, range, range, sideways, sideways, sideways.
So far, so good?
Next example?
Next example, let's do that.
Let's move on.
Any specific pairs that you guys like that you're watching?
Here's the nice question.
Kyriakos you're asking, "Why is he bleeding?"
Think of it this way, think of it this way.
Here's what happens, once the market starts to roll over ... See, you guys all agree this
is a downtrend?
That's a downtrend right?
Everyone can see it's a nice beautiful downtrend.
Let me move this up.
Everyone agrees this is a nice beautiful downtrend.
Along this downtrend, things slow down, they go sideways.
But in this sideways, nobody is buying except a larger player, nobody's buying.
Everyone in fact is thinking, "How can I sell?
How can I sell?
How can I sell?"
Then it goes up a little bit more, stop losses and they're like, "Oh man, it looks like it's
not going down."
They'll see a red candle show up, they'll sell it again, they'll sell it again.
So, more people are still selling and then it goes up a little bit higher, the buyings
begin, people start buying.
The neighbor starts buying it, uncle John starts buying it, uncle Tim starts buying
it.
And as they start buying it, everyone's like, "Oh my god, he bought it and he made money
till here.
Why am I not making money from this?
It's on the news, it's on every forum."
Now the world piles in and says, "I want to buy to, me to."
Hashtag me to.
They want to buy, they want to be in on the action.
So, as they start getting in on the action, there's a lot of buys coming in.
The whole public starts piling in to do the buys because now it's obvious, the world can
see it from their own eyes that it's a buy.
As they start buying, the big boys are like, "Whoa, now that there's a lot of buyers, I
can sell to them, I can sell to them."
So they start slowly, slowly, selling.
The world is still buying.
Remember, all the greedy people, "I want to buy to, I want to buy to," and the big boys
are like, "Yeah, yeah, keep buying.
Keep buying from me, no problem."
"I want to buy to, I want to buy to."
"Yeah, no problem man, keep buying.
No problem, keep doing it."
"Oh man, it looks like my buys aren't working."
"Oh yeah, I want to buy to, I want to buy to."
Now at this stage, notice how big I drew my arrow on purpose because when that shocking
candle happens, the world panics and says, that's the buy.
Buy it double, buy it triple, buy it quadruple, because now it's working.
That's what I was waiting for.
Once that happens, the big boy and smarter individuals, they start hitting it.
So there's a big boys money, there's institutions, there's hedge funds, there's pro traders,
all of these people start hitting the sell and then the prices get offset.
There's not enough buyers compared to the seller because they're all try to profit from
this now and as that happens, the big boy's like, "Oh no, I didn't fill all my orders
you monkeys.
I didn't fill all my order," so he starts bleeding.
The prices just start running away.
He starts bleeding and he's like, "Oh my goodness, I can't ..."
So as much as the sellers are making money, the big boy's like, "God dammit you monkeys,
I can't believe you guys sold it really, really hard.
You're ruining the business."
The further it goes down, the more people sell.
The further it goes down, the more people sell but the big boy is like, "I don't want
to sell, put on the brakes."
He will remove his cell positions, and that's when your pullback comes back in and you're
thinking one question, "Will he come back?
Will he come back?"
If you cannot answer that question, then whatever you do in that trading is just a guess, it
is just a guess.
So far, so good?
That's the idea behind why he's bleeding.
That was a very good question actually.
That's why he's bleeding, so he wants to stop that.
While anyone who's on the sell, they're thinking, "Hold on to the sell, we're going to make
a killing from this."
The further that sell goes, the more dangerous it gets and no one sells because everyone
was buying, everyone was buying.
Some people selling, some people selling, more people selling, more people selling,
most people selling.
That's how the market works.
It's just the same thing over, and over, and over, and over, and over again.
It is not the big boys trying to rip you off and steal your money, it's just how the market
is.
The people get attracted to sudden movements, while the big boy gets pissed off at sudden
movements.
He doesn't like it.
Strange, isn't it?
How many of you guys have seen the market that way and have been taught to look at the
markets that way, in a more logical and accurate fashion rather than just guessing, oh a downtrend,
that's your friend?
Does that make sense?
Okay, so once the bleeding happens, you want to know when he stops the bleeding and then
if he's going to come back.
And if he comes back, you want to get in with him.
You want to allow him the time to create that rainbow arch, for him to get back in.
Cool?
All right, let's do one more example, let's do one more example.
I don't know ... What kind of charts did you guys say?
Some of you guys said pound-yen, gold, pound-USD, pound-yen.
Okay, some of you guys are saying pound-yen?
A lot of you guys are saying pound-yen, please.
Okay, let me just open up a pound-yen then.
It seems like that was the first one I saw, pound-yen or pound-USD.
Apologize, I'll just use one of them.
Okay, let's take a look.
Let's go to the current market.
We're going to use the entire knowledge you have up until now.
So, markets, I'm on a 15 minute chart.
Without even going into any other timeframe, we're going to look at this time frame alone.
All right, here we go.
If we want to draw, we want to know what is our bottom, and then what is our top.
So, the markets were going down here, down, down, down, down, down, down, down, popped
up quickly.
That's not my bottom.
He's put in the low, but it's not our bottom.
Is my face interrupting that thing?
You guys can see the X right?
Let me just ... There we go.
That's why it was there.
I'm going to put my face back, okay.
So, now it goes sideways, sideways, sideways, sideways, sideways, sideways, and then it
pops upwards.
Boom, that's our bottom.
We can draw the bottom of our Fibonacci from there.
That's our bottom.
He goes up, goes up, goes up, puts in the high and says, he-ha.
Gets up to there, turns around.
Where's my transition?
That cannot be my top.
He's put in a high, but he hasn't put in a top.
There is no rainbow arch.
That's not it.
So, whoever was buying from here is still buying technically, he's still buying.
However, red candles came in sharply.
No problem, it's still a buy.
No problem, it's still a buy."
The buys are going up, they come down again.
The buys are going up, and then they start coming down again.
The buys are going up, they're coming down again.
Now he's starting to go down very, very quickly one more time, and then he goes back up.
Now, this whole process, this whole process, no sideways action.
Four candles until it reaches here, and he does this sideways action.
Hold, hold, hold, hold, hold, hold, hold.
Can I draw my line here and ask you guys one question?
Do you think that was a higher high technically per se, or is that just a fake out, move up
and comes right back in?
If that is a fake out move that goes up and comes right back in, you need to observe.
If this is the bottom, he put in a high, he put in a high, he rolled over which means
if I draw it from here to that high there, that's my drawing.
If I draw from there to there, I know for a fact that this price where the big boy was
buying from was not enough for him.
So, anytime the market comes down, you can't use this area, you can't use this area, you
can't use this area.
You have to use all the areas below this price, so you can either observe here, maximum you
can observe here because now we're getting beyond this area of the big boy.
Does that make sense?
But, it will help you avoid getting in too soon.
If you have limit buy orders here, you're in trouble, you're going to get in trouble.
That's going to be immediate stop losses, stop losses, stop losses along the way.
Doesn't matter how many times you try.
Does that make sense?
So, this price right here that they were buying from was unable to logically make a higher
high.
If it was unable to make a higher high, that means we need something better than this price
for this fella who was bleeding.
We need something better than that price, so we need prices to come down.
So, all the Fibonacci numbers along the way that is not below this is useless, is troublesome.
Does that make sense?
All of this knowledge that you have right now comes from price action.
I'm using price action knowledge to help you be better at knowing when you can use Fibonacci
and when you cannot use Fibonacci.
Don't get me wrong, we all respect Fibonacci.
It is a universal number and it is a wonderful discovery.
Does that discovery help you?
We can respect it as much as we want, but let's not get our eyes off of what we need
to do.
Okay, Please do not forget that.
Everyone keeps getting attracted to something cool and does not forget the bottom line and
why you're trading to begin with.
So, make sure you get better by day.
Now, everything that I've taught you from the price action techniques, we discuss it
very, very thoroughly in our Mastering Price Action course.
For those of you guys who do not have the Mastering Price action course, it is a seven
week long course.
We go over it week after week teaching guys what to do, how to look at the markets, how
to understand what you can do so you can stop your bleeding and increase your journey to
become a better trader with more knowledge, more tools behind your back to tell you, "Wait,
don't do this here, you can do that here."
This makes a huge difference.
So, they're a seven weeks long course.
Each week I give you enough time for you to practice the material, ask my team whatever
questions you have.
We have 24/7 support practically.
You ask a question, we answer.
We reply within three hours, but we're known to do that within 10 minutes.
Some of the guys will swear by it, that we're very fast, we're very good.
We're one of the highest rated courses as well and on top of all of that, it comes with
a 30 day money back guarantee.
Now, you can pick up the course using Urby down here on urbanforex.com.
If you guys are on YouTube, you guys can use the links below YouTube, or you can head on
over to urbanforex.com and pick it up.
Just as a special for this webinar, for the first 20 people, we're also giving away a
20% discount for the course.
You are able to pick it up for a 20% discount, and that means it's less than $200.
The courses for yours to keep.
It is unlimited, it is on-demand, it does not expire, and there is no recurring charges.
It is a one time investment for yourself.
You're going to love the course and everything will get easier, and easier, and easier.
All right guys, I hope everything you've learned today was absolutely worth it.
Please do not become a webinar junkie.
Learn from it, take notes, go back to your charts, watch it, research, get better, and
build a better tomorrow for you guys.
That's a promise that we do at Urbanforex, and I hope you guys keep the same promise.
Thanks a lot guys.
It was wonderful to have you guys, I'll see you guys in two weeks.
For those of you guys who are joining the course, I'll see you guys in the course.
Cheers guys, thanks for coming in.
Until next time, bye for now.