Fib Stick?

I have re-read the lesson a few times and am no closer to knowing what a Fib Stick is. (Except that it is short for Fibonacci Candlesticks.) A search of Forexpedia found nothing. The lesson does not define one. And, what upsets me the most, that was the only question I got wrong in the quiz!!:mad:

Who can clarify this for me?

Thanks.:33:

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I’ve been trading for a few years and never come across the term.

You’ve hit the nail right on the hear there though. Thats all it is, it is a fibonacci candlestick, the result of using fibs on candlestick charts. As the lesson states “In combining the Fibonacci tool with candlestick patterns, we are actually looking for exhaustive candlesticks. If you can tell when buying or selling pressure is exhausted, it can give you a clue of when price may continue trending.” If you incorporate the retracement levels it can just add another element of analysis to your trend spotting. The charts in the lesson are pretty good.

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Its the basic candle stick pattern in a fibonacci setup.
For example: When in an uptrend you see a shooting star forming ,that may be a trend reversal sign so you pop out your fib retracement tool.Now that u combined the 2 methods ,that shooting star candle is officially a fibstick :smiley:

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I am not finding here details how to trade using Fibonacci retracement. Can anyone show me details here with screenshot please?

@tanvirbd

Here is sth. you are looking for. Read first.

Fibonacci Retracement | Fibonacci | Learn Forex Trading

The problem I have with Fibonacci Retracements: One could probably use random, comletely different levels like fibo levels 61.8, let’s say 88.9, 54.3 or 12.3 and find enough examples, where they work.

It’s simply measuring the percentage of the retracement. It’s information that you can use however you wish. Me, I use only the 50 to 61.8 levels as a zone to look for signals of a trend continuation.

How to actually calculate Fibonacci levels
Fibonacci sequence
Start with zero and 1. 0+1 = 1, so 1 is the next number. 1+1 = 2, and so on.
1,1,2,3,5,8,13,21,34,55,89,144,233,377,610,987,1597
1st step Ratios
1:1, 2:1, 3:2 etc.
N/A, 1, 2, 1.5, 1.67, 1.6, 1.625, 1.615, 1.619, 1.6176, 1.6182, 1.61798, 1.61806, 1.61803, 1.61804, 1.618033, 1.618034, etc.
Inverse of 1.618034 = 1.618034-1 = 1/1.61803 = 0.618034
0.618 is the first ratio
2nd step Ratios
1:2, 1:3, 2:5, 3:8, 5:13, 8:21, 13:34, 21:55, 34:89, etc.
.5, .33, .4, .375, .385,.381, .382, .3818, .3820, .38194, .38197, .381963, .381967, .3819656, .3819662
Inverse of .3819662 = 2.618033 =~ 1 + 1.618034
3rd step ratios
1:3, 1:5, 2:8, etc.
0.33, 0.2, .25, .231, .238, .235, .2364, .2360, .2361, .23605, .23607, .236066, .236069, .236068
.236068-1 = 4.23607
The Fibonacci ratio of 76.4% is found as follows:
50-23.6 +50 = 76.4
4.23607/1.618034 = 2.61803
Pretty fascinating stuff
Of course you could find more and more ratios by finding ratios in increasing steps.
More stuff on the Fibonacci sequence:
Fibonacci Sequence

So why don’t they just call it candlestick? I was tentative to think that a Fib stick should be reserved for a special candle stick, like the one that step over the Fib level. Is it so?

This: “If a Fib stick does form, you can just enter a trade at market price since you now have more confirmation that level could be holding” confirm that “Fib stick” is a special kind of candlestick, the exhaustive one (the doji). I don’t think you can call any candlestick as Fib stick. This would render the concept worthless.

I’m on a quiz right now and was like nope. Not missing this. haha. Thanks for your post.

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I think it is related to the fibonacci candlesticks and I don’t think you should worry about it so much.

This pattern is always must be combined with any other indicators because it always enhances your trading strategy, you know. So, fibonacci retracement is a such kind of level which is lovely to be used by most trader in combination with candlesticks, I guess it might be considered as the most strongest indicators. Fib retracement level gives a strong signal for a trend reversal or continuation. But we always must take a look at the candlesticks, for example if we see that doji spotted on fibonacci levels it may be a signal for possible retracement. However it may vary depending on the position of doji in a trend.