Analysis
Drawing Fibonacci Retracements in TradingView: Anchor Selection
The argument about Fibonacci retracements is never "does it work" — it's where to anchor. Wrong anchor, everything after is wrong. This one is only about getting the anchor right.
Basics
- Pick the Fibonacci retracement tool; in an uptrend drag from the swing-low start to the swing-high end, reverse for a downtrend;
- Levels auto-plot at 0.382 / 0.5 / 0.618 / 0.786.
Three anchor rules
- Pick indisputable swing points: a major high/low you recognize in a second; if you have to hesitate, it doesn't qualify;
- Use wick extremes, consistently: don't mix highs and closes in one chart;
- Anchor one complete leg: from the trend's start to its exhaustion, not a mid-leg sub-move.
A single Fibonacci line isn't a reason to trade — it needs confluence: 0.618 + a prior high + a higher-timeframe MA in the same zone. See the multi-timeframe workflow.
Anti-pattern: moving the anchor after the move so the line "happens to" hit a candle feels great in review and is useless live. Once anchored, if price invalidates it, re-draw the structure — don't nudge.