How to use Fibonacci Levels to create a Trading Roadmap

[00:00:06.10] - Speaker 1
So let's remove the drawings. So first things first, where the most people have some strip, it's the Fibonacci. So what is the Fibonacci tool? People ask me, is there an indicator? No, that's no indicator. We have this in our trading view. It's. It's the Fibonacci tool, the basic tool like this. So, and let's go together into the settings and see what settings I'm personally use for my Fibonacci I'm using on the Fibonacci retracement simple and easy level. So I'm using the 0, the 1, 0.5, 0.382 and 0.618. Why I'm using only this levels. And now we came to the easy one because I tell you, I make it as simple as possible because I'm using the levels because exactly this 3 level 0.382, 0.5, 0.618 is always the same price level. And here is how you can see it. It's always the same price level. There's no question anymore, should I draw my Fibonacci from the top to the bottom or from the bottom to the top? Because the price levels, they are always the same. So there's no question where you should draw your Fibonacci. From the top to the bottom or button to the top.

[00:01:48.14] - Speaker 1
Whatever you want, you can draw it from the from any position. The price levels are always the same. If you follow this. And here is how I can show you this again. So now we draw the Fibonacci from the bottom to the top. And the next Fibonacci we're drawing from the top to the bottom.

[00:02:14.15] - Speaker 2
And here we go.

[00:02:15.18] - Speaker 1
What you can see this area here where we put in now our rectangle. It's always the same, no matter if you're drawing from the top to the bottom. From the bottom to the top, there's no question anymore. It's always the same if you use the Fibonacci settings like this. All right, so this is the number one of the Fibonacci what we should understand. Okay, perfect. So let's take this out.

[00:02:52.29] - Speaker 2
Here we go.

[00:02:54.12] - Speaker 1
And the next step is we're looking again in the Roadmap principle version two, where we're using our Fibonacci also for high correlation lines, what's delivering high concentration, we get the gamma level and then we map out our liquidity areas. So let's take on the indicator again. But now comes the part where you as trader make it so Complicated and where we get so much questions and. And I will say don't overcomplicate simple stuff. So you ask me like for example Patrick, should I map out from blind spot 10 to blind spot 4 or to blind spot 1 to blind spot put support, whatever. Forget this, forget this question for one single minute and I will explain you why so technical. Every trader have a different trading style. Someone is a day trader, someone is a scalper, someone is a position trader, someone is a swing trader and someone have completely other things. Someone is an options trader. So basically the roadmap must working for you. If I'm drawing the roadmap in the 6am morning club it must not showing like my roadmap. Sometimes I map out from blind spots 7 for example to GEX because in the moment it makes sense for me.

[00:04:34.14] - Speaker 1
The next day maybe I'm using one day max to call resistance because it makes sense for me. And there's no rule what you can connect together. The only rule is the market must confirm your roadmap. So this is, this is one of the main thing. The market must confirm your road map and you can play with your Fibonacci. And now let's start. Let's start again to build the roadmap for the NQ so we can say technical. I like to connect BL7 with the call resistant.

[00:05:15.11] - Speaker 2
And here we go.

[00:05:17.26] - Speaker 1
Then we connect basically blind spot 71 day max bl9 gex2 and call resistance based on the Fibonacci. So we no more mapping out all these levels together. No, we're mapping only out the Fibonacci. So from 00668 to 0382 that's it. So then you have your one level also what you can do. There's no rule about this. You can say also now I'm going again from BL7 but this time I will connect to I don't know Gex3. And why you want connects to Gex3? Because it makes sense for you. And here's the point why it makes sense technical for you. Here we go, let's map this out. We're using the Fibonacci level again. We map out the Fibonacci levels take out the Fibonacci, take out the indicator and here's the point why it makes technical for you. Send because you was capturing here this area and if you're looking to the four hour time frame it was making also completely sense. Look at this. We capture here the candle wick and the candle wick is stopping like here. That's a nice confirmation for you based on your trading style. So look to the four hour time frame and see if the market confirms what you was drawing out.

[00:06:57.20] - Speaker 1
But it must not looking like me. And there's no rule what you can connect. It must be only that the market is confirm what you was drawing out. Again I I take out the drawings so and I have really interesting when I was starting in the morning to capture first the candle wick from. Okay, let's go back to five minutes. I was highly interesting in that my roadmap capture the CPI move. This was technical. This 830. So what I was using I was looking into the levels I was maybe using the call resistance and G3.

[00:07:45.05] - Speaker 2
Here we go.

[00:07:45.23] - Speaker 1
I was mapping out from call resistance to G3. Why? Because we're looking for high correlation, high concentration. Did I have high concentration? Yes, because I have to call resistance in the area BL10, GEX5, BL6 and GAGS3. And then I was mapping this out and here we go and take out the Fibonacci and if we take out the indicator so what I get, I get a nice and smoothy area Respect the tier. We respect the CPI candle. So this I was not seeing in the morning but it's also respected and also now here respect. If we go now to the forward time frame Is this something what is respected also from the market? I would say yes, it's also respected here. Boom. We get the down move here respect that. And now we came to the resistance. It's based on the levels so and then we can take out our indicator. So if we have now the CPI candle working so we covering the CPI candle so then we can say okay what we can cover also where we are really interesting areas. What should we map out for our roadmap? So then we can say okay, I want to handle also this candle from the CPI the the wick to the upside and the wick from the downside.

[00:09:27.08] - Speaker 1
Okay, how I can cover this? Let's see what we can use. We can use technical from put support 0dte to BL4. Let me cover our rules. Yes again we're looking for high concentration correlation and then we map out our liquidity areas. So we have technical BL4X1, BL1BL2 high volatility 0 DTE and put support 0 DTE we cover. This makes completely sense. Now we map this out. Here we go take out the indicator and then we have a nice area where we can start with our roadmap so if it was in the morning 8:30 and then we can say 9am Eastern time, 6am London time. We were starting to play out our roadmap. So the CPI candle was there. So technically was first covering the CPI candle based on our roadmap proxy it's looking very nice and and very good. So if you're going to the forward time frame makes this also sense 100 if the CPI was stopping there. Yes it makes also sense here. All right let's go back. Let's go back. Now we take on our indicator so we have technical cover now our CPI so then we can say okay what we want to see.

[00:11:07.19] - Speaker 1
We want to see how far we can technically go. So like this area what is really interesting for us what we can map out again there's no rule. There's only the rule that we're looking for. Concentration correlation and map out our liquidity areas. So we can basically say we can connect the VL6 again. And we go now to the call resistance 0dte and gamma wall 0tte. So what we cover gamma wall core resistance, call Resistance BL10 and BL6. Perfect. Let's map this out.

[00:11:47.18] - Speaker 2
Here we go.

[00:11:51.15] - Speaker 1
And the magic has happened. What we cover now we cover now here this candle wick perfect. It's a perfect match. And we do this also because we can can use the roadmap also for swing trading for position trading. So it's maybe you draw the roadmap one time for three days. So we we are highly accurate with this. Okay let's take on indicator. So what could be possible if we breaking troop this we have no idea what can be the next target. Like we're doing some magic stuff. What could be technical the next area, the next liquidity area when we come in this area. So we're using our Fibonacci we can say okay let's connect core resistance again. Let's go back to possible BL9. All right. I like this area. It feels good for me. It gives me a good feeling. So I'm I I map this out again. There's really no rule if you should connect BL10 with BL7. No there's no rule. It's always what you think for your trading style. The only rule is the market must confirm the level. So now let's look into this. Or if the market confirms the level we go to the four hour time frame.

[00:13:19.11] - Speaker 1
Remember this was our level. I'm taking out the indicator and was disrespected from the market. What we was throwing out 100% bullseye my friend. Why here we can see it. Boom. We covering this candle nice recovering this area here. Boom. Bullseye my friend. 100%. Good work. And this is the confirmation if what I was drawing out of my roadmap is. Is respected from the market. If I'm looking to the left side to the history and this is something what I'm doing. I'm. I'm looking always to the left side. If the market was respecting my level. So then I know based on the liquidity area I have now a good area to the upside. Let's take out the indicator. So if we breaking through this area we now possible we can target this area at next to the next step. Because this was the area where the market respected. So we get and target point and we get a liquidity point and we get possible a market shift. So we have technical no idea what's happened. If we touch one of this levels. This is only for us some point interesting point where we can look into.

[00:14:52.08] - Speaker 1
So it's a road map. All right. Okay, let's take on the indicator again. Go back to the five minute time frame. So we have now this area but we have something something here and on the top. So what we can connect at next what makes possible sense. Let's play a little bit around. So bl8 to gex2 make the sense. It could be make sense but okay, let's. Let's do it. I'm a scalper. So for me technical I covering now an area from. Yeah. 66 points for the top. It's. It's a little bit too. Too big for me. So based on my trading style I'm a scalper. It make no sense. But for you if you be in swing trader position trader this could make so much sense. And then you're looking to the left. If you cover really good area we can do this again. So let's take out the Fibonacci, take out the indicator. Go to the four hour time frame and what we was mapping out makes this totally sense. Oh yes. Here we started, we started here for the upside. Makes sense. But this is not my area where I be interested.

[00:16:16.28] - Speaker 1
I'm a scalper. It's a big area. So let's go back to the two minute time frame. Let's take this out and I'm more interesting in the area like what we have here. So there are now two ways. There's no rule I can say okay let's map out from. Sorry my friend. I can now say let's map out from BL7 to GEX2 could make sense. Yes. I can also say call resistance. I can say this also. I'm looking always to the left side to confirm this. But let's say now we're using BL7 to GEX9. Why in my point of view I covering the one day max BL7, BL9 and GEX2 and let's go. I map this out again.

[00:17:15.27] - Speaker 2
Here we go.

[00:17:16.19] - Speaker 1
I have a little tiny area, but that's okay. Take it out. Or did I make a bullshit? Yeah, I make a bullshit. Sorry my friends. So take out the indicator. So now I have again here and target point. If I'm looking now to the higher time frame possible maybe the one hour time. Because it's a. It's a little tiny area. Make the sand what I was mapping out. I see it directly with my eyes. Look at this. It was mapping out this area here. Nice. Beautiful, beautiful. It was doing a great job with our roadmap. And why? Because we confirmed that what we was mapping out is working. We're looking to a higher time frame. We're looking if the levels was confirmed the last time and then we can go back to our time frame like two minute or five minute, whatever you trade. And now if you be starting the day or tomorrow you have possible ESSA as a scalpel like what I'm be. We have now your areas where we can go in and we know. Okay the last time when we was touching this area we came down. So okay, if we come to this area, if we break this area, we can possible target the next area.

[00:18:49.21] - Speaker 1
If you're breaking through of this area, we can target possible this area. And again and again and again. So now the tricky part is coming and this is something what makes you maybe confused. So if we zoom out or zoom in a little bit. Sorry, zoom in at the right word. If we zoom in. So we have now a gap from 165 to 190. For me as a scalper it's a huge gap. I need only few points because I have a large position. I need not so much ticks. So I can say now on my roadmap, let's map this out again. I'm using the Fibonacci and connect the Fibonacci with this area and this area and have in the middle line and map this out.

[00:19:53.07] - Speaker 2
Here we go.

[00:19:54.13] - Speaker 1
Now my roadmap looks a little bit different. But if we looking now to the left side we see that crazy stuff has happened again. Look at this where we will stop with this candle. We were stopping here, and this is a great information. If I'm looking back to the one hour time frame, maybe we see some other confirmation where we can say, oh, man, that's crazy. Yeah, I see something.

[00:20:23.17] - Speaker 2
Here we go.

[00:20:25.12] - Speaker 1
This area is a nice area and we should look into this. Why? Look at this. Yeah, the candle rigs, they respected this area. Let's take a deep dive into if we see something else. Yeah. So look at this. Boom. We're stopping here all the time. We hang around. So technically we hang around on this area. So if we have the information like this, then we know as a scalpel what IB this is a really interesting area. I should map this out. So why I should miss this area? So here we go. Coming back. Now we have also some area and this area have a history because he was looking to the left side. And I can do this also with this area. I can connect this also from here to here. Why I'm doing this because I'm a scalper. I need not so much points. And I know if I was mapping out the Fibonacci level before 99%, it makes sense if I fill the gap with the Fibonacci and see if this is working. All right, so let's go back to the one hour time frame. Remember, we have this, this line here. So.

[00:21:50.05] - Speaker 2
Here we go.

[00:21:52.08] - Speaker 1
What is the history telling us? Oh, number one, look at this. We get the candle wick here. Boom. And when we get the next candle wick.

[00:22:06.06] - Speaker 3
Boom.

[00:22:07.03] - Speaker 1
We get the candle wick here. Nice. Then we get the next candle wick. So basically, there's no question this level was supporting from the market.

[00:22:18.11] - Speaker 2
Here we go.

[00:22:19.22] - Speaker 1
Next candle wig. There are many, many candle rigs. So this area, for me as a scalper, this is a golden area. If I know this area, I can place my trade. I know what I can do, and that's nice. Okay, no worries. But make the sense what I was doing. Now give me some little tiny feedback. Sean or Dean, come on, someone can speak with me.

[00:22:46.29] - Speaker 3
No, I'll say it. As we say before nuggets, this is outstanding.

[00:22:52.29] - Speaker 1
It makes totally sense.

[00:22:54.05] - Speaker 3
Yeah, makes total sense. I mean, I was sitting here as you were charting. I was. You answered my question. But as a scalper myself and learning how to scalp, I like going down to the smaller time zones and making the zones much smaller, like you just drew. And it's. It's just perfect. I mean, it's. This is outstanding. Outstanding.

[00:23:19.03] - Speaker 1
Yeah. And. And. And this is something. What the People making so complicated because I get so many questions like okay, why you was drawing the Fibonacci here? Why here? So we was doing this step by step. So first we have the CPI candle so we're looking to only to the CPI candle if you remember so we went, we was looking that we can map out the candle we to the upside and then to the downside so then we have some basic, basic stuff around so we have the first basic roadmap and then we're looking again for areas for the top for the downside and in the middle for Skypa what could be interesting for us this was the steps but if you be a swing trader of course you're doing crazy other stuff you're looking for other areas and tomorrow maybe we're not drawing From Gags Level 1 to 1 day max or something it's completely different. You're looking only for for the confirmation from the market and and now let's go back to the downside so we can do this in the downside on the same way so let's go back where we are.

[00:24:30.15] - Speaker 1
So here we go. Go to the 2 minute time frame maybe or 5 minutes 5 minutes better presenting here we go. Let's turn on the levels again. We can say we can connect now this area with this area and then we draw our Fibonacci. This is one way makes the sense Take out the indicator, take out this. Yeah it would make sense because we was covering here the ranges makes sense. This is so accurate. No, I think no and here's why because we have levels there so you can do this but if you have levels here in the middle so we can now think about how we can cover something. We're looking to the left side we're looking what area is really interesting and what should we connect. So I think this area here where we have the candle mix here where we have the candle mix here this should be really interesting. We should sing we should look into this if we can cover this in any way. So okay, let's start the drawing. So we testing this so we start on bl6 going now to put support going now to gex4 and I think gex4 is the area.

[00:26:01.11] - Speaker 1
No it's not the area. Yeah Jax1 is the area where we should really like but it could be the same what we was drawing on before but let's map this out.

[00:26:13.02] - Speaker 2
Here we go.

[00:26:16.08] - Speaker 1
Would be the same. Yeah it's I think it's technically the same but we was connecting the levels together and here we go the 50% area. So the middle line of the rectangle. Remember middle line, rectangle, 50 area. So the 50 area is totally in the play.

[00:26:39.17] - Speaker 2
Here we go.

[00:26:41.12] - Speaker 1
You see it here, you see it here. And if you see something like this, then if you be in the market, you should think about this. That the middle line was before respect. And if you be in an area like this, a shippy shopping area, we're not interested in this. So but they give us some history and make this area sense. If you're looking to the left side, maybe go to the four hour time frame. One hour is much better. Much clearer, I think. Yes, they're making sense. We cover also this area here. It's nice. Makes totally sense. All right, so now let's go back to the downside. Let's map out our roadmap. We make simple easy steps together.

[00:27:42.11] - Speaker 2
Here we go.

[00:27:43.17] - Speaker 1
What we are looking for now. So basically we have now this candle wick here. Can we handle the candle wick? So we can say. And we can say, okay, let's connect DL1 and put support like what we was doing in version one. We could, we could capture this. Makes sense. You can do it. There's no rule. But I would say let's. Let's play with the Fibonacci. Let's do it. It's fun. Let's play around a little bit with this to find the area where we're really interesting. Is this from GEX 1 to 1 day min? Ah, maybe. Or is this more like 1 day min to high volatility 0 DTE? Yes, I think it's high volatility 0 DTE to 1 day min. Based on our concept, we're looking for high correlation blind spot. Delivering this, looking for high concentration where all the levels are. And then we build our target. So what we cover, we cover blind spot 2. High volatility 0dte would support GEX 4 and 1 day mil. And now let's map this out.

[00:29:01.28] - Speaker 2
Here we go.

[00:29:04.14] - Speaker 1
And then take out the indicator. Boom. It was finding some area. If this is respected also from the market. Yes sir, it was respected. So it's in the play. And now we have a gap between this. So if it be on one hour time frame or four hour time frame. So we can now play around on this area also we must not go back to the two minute. So we can say okay, let's map out this area also using the fib.

[00:29:45.28] - Speaker 2
Here we go.

[00:29:48.25] - Speaker 1
Map this out. Build a gap. Was respected here, respected here. But now let's go. Let's now be looking if the is from the one hour time frame also respected on the five minute time frame or two minute time. So remember it was this area here. Yes, it was respected here. We were stopping here. So you can now connect like what he was doing here. And technical. If we go in again with our levels so we have to the downside much more levels. So we play around again what we really interesting. We can say we make it a little bit tinier. BL5 GEX4 to be L5. Yes, could be. Or we can use also the Principe that we're using GEX4 to BL3 only as an example. Let's say we map out GEX4 to BL3. Let's go. Let's do it then. Now you have some gaps. Take out the indicator. You have a gap here. So how you can fill the gap? Technical, use your Fibonacci for the gap fill. Map this out. Most of the time it makes sense and the market will confirm this.

[00:31:17.02] - Speaker 2
Here we go.

[00:31:18.27] - Speaker 1
Take on the indicator and then draw the Fibonacci again from this area to BM3 and then here we go. Map out the Fibonacci area. Take the Fibonacci out, take out the levels. Remember the last three levels where we are looking for the let's go first to the one hour time frame. Yep, the last level makes completely sense. Look at this. The middle level makes also sense. Look to the candle here. And the third level makes sense. Yes, makes also sense.