Let's explore a smarter approach to market analysis that beats the usual Fibonacci methods. We'll focus on finding swing highs and lows for more effective trading. This method not only simplifies things but also helps you spot crucial levels in the market.
How to Do It:
- Find a Swing High and Low: Pick out a clear swing high and low in the market. These points will be the basis for our analysis.
- Measure the Heights: Check the vertical distance between the swing high and low. This height is crucial for predicting future levels.
- Multiply for Key Levels: Multiply the swing height by simple fractions like half and quarter. These new levels become potential support or resistance points in future price movements.
- Pay Attention to the Starting Point: Give extra attention to where the swing starts (the origin). This spot marks the beginning and becomes a reference for future swing heights. Choosing the right origin makes your predictions more accurate.
How to Make This Tool:
You can make this tool by using the Fibonacci retracement tool available in TradingView. Go to the Fibonacci tool settings and change the percentage in multiples of 0.25 as shown in the settings below. Then, by using this tool, you can plot the lines in the multiple of the initial swing you selected on the chart.
