Fibonacci refers to the Fibonacci sequence, which is a series of numbers named after the Italian mathematician Leonardo of Pisa, also known as Fibonacci. He introduced this sequence to the Western world through his book “Liber Abaci” (1202), in which he used the sequence to describe the breeding of rabbits.
The Fibonacci sequence starts with two numbers, 0 and 1, and each subsequent number in the sequence is the sum of the two preceding ones. Therefore, the sequence begins like this:
0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, …
To generate the sequence, you add the last two numbers to obtain the next number. For example, 1 + 1 = 2, 1 + 2 = 3, 2 + 3 = 5, and so on.
It also has important applications in mathematics, computer science, trading, crypto and other financial markets.
ICT Fibonacci Levels
ICT Fib level are those level where we can find optimal trade entry(OTE). These level and their descriptions are given below.
| 0 | First Profit Scaling |
| 0.505 | Equilibrium (50% level) |
| 0.618 | 62% Retracement |
| 1.0 | 100% (original position) |
| 0.705 | Optimal Trade Entry (OTE) |
| 0.79 | 79% Retracement |
| -0.62 | Target 2 |
| -0.27 | Target 1 |
| -1 | Symmetrical Price |
ICT Fib Settings Tradingview
For setting ict Fibonacci level on trading view do the following
To use Fibonacci retracements for trade entries and take profit zones, follow these steps:
- Set up Fibonacci Settings:
- Click on the Fibonacci retracement tool in your trading platform.
- Place it on the chart by clicking and dragging from the swing high to the swing low (or vice versa) that you want to use as reference points.
- Adjust Fibonacci Levels:
- Double-click the Fibonacci retracement tool on the chart.
- Right-click on the tool to access the settings.
- Go to “Fib levels” and modify the levels as follows:
- After setting the levels, click “Save” to apply the changes.
How to Apply ICT Fib Settings on Chart
In the ICT trading strategy, when using Fibonacci retracement levels, we place the tool from the lowest point to the highest point of the candle’s body if the market is going up (bullish momentum) and from higer to lower in bearish momentum.
We do this because the highs and lows of candles can differ between brokers, making them less reliable. By focusing on the bodies of the candles, we can find the best spot to enter a trade with good profit potential, regardless of the broker we use. This helps us make better trading decisions and increases the chances of successful trades.
ICT Optimal Trade Entry (OTE)
In the ICT trading strategy, Optimal Trade Entry (OTE) levels are points in the market where there is a significant retracement in a particular direction. Traders look for specific entry setups at these levels.
When traders identify an OTE level, they are looking for potential trade opportunities. They seek setups or signals that indicate the market is likely to reverse from the retracement and continue in the direction of the overall trend. By focusing on these OTE levels, traders aim to find favorable entry points that offer a good risk-to-reward ratio for their trades.
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