So, after theoretical mathematical part we will look in the chart for the Fibonacci retracement. And I'm actually here in the tax Jones because of my German lesson. We found this protective retracement over Yes. Right. So that's the chart from 2019 from the beginning and end of December to today and if we know here on the left side you can pick the fib retracement, so Fibonacci retracement and we're starting at the lowest point. It's still there and go now to the highest point over there and once you know See is exactly the Fibonacci retracement because we have the higher highs and higher lows.
And then there is the first big retracement and it's on zero dot 618. Okay, so it's exactly at the Fibonacci Fibonacci numbers. And the next one is over here at the 0382. Okay, it's exactly there. So we have the other one at zero dot five. So it does not need to be any time exactly on the line.
But in this area, okay, because you have the area here, here, and here. We have three or four retracement areas, and we are now at the highest point. So if the child raises any higher or next retracement would be here at zero dot three 236 Okay. And I will have a look that we in our practice module that we make some screenshots now and then see you later what happens because the practicing modules are over weeks and months and not the course you know because it's for now but what happens in the next month we will see in the practicing module. Let's have a look to the NASDAQ NASDAQ 100. And we want to do the same here.
So we go back to the Fibonacci retracement, look for the lowest point and go up to the highest point. So here, we don't climb up again but we are under a good way in NASDAQ So if we would go there is see it is more exactly okay so our first retracement was at zero dot five first retracement and the second is around 0236 the range up to 0382 so that's not perfectly matching Fibonacci retracement. But however just to show you how the Fibonacci retracement works because Because remember, the Fibonacci retracement is only a mathematical tool. Okay? So nothing else, just simple mathematics. And I think it's really interesting if we look on many charts and indices Is that the Fibonacci retracement?
Mostly mostly works Yeah, it's really interesting and if we look now for this one, this area from the lowest point in May up to the highest point again Can you see it also more executive because this time the lowest low here was at zero dot 6.8. And the next one is one retracement higher. Okay, so the zero dot five over here and now we are up there again and if we have the next retracement that should be around 0383. So you see again that there is the possibility that Fibonacci retracement mostly happens and I think it's really interesting However it's not the best option for trading because what you can trade now is that you have to wait you have to wait for the next retracement. So if the cost goes there or back now to open a trade and that could be very long time okay because we are on a daily chart basis and if we look for a one hour chart and put a Fibonacci retracement again here okay you see it doesn't work.
It doesn't work on this shot area. We can we can also make this bigger and go from this retracement up to the highest point again. Stare but you see there are bigger retracement So if you want to use the Fibonacci retracement, you need a longer timezone. But we have that's all for a Fibonacci retracement at this point. In the next episode we will also use the Fibonacci numbers but not a retracement because we will talk about Elliot waves and Elliot waves are really interesting, interesting theory. Because if you now look on the chart and just watch on the green and the red bars, what you will see and you will see this in 99% of any chart.
You see those waves clusters, okay, there's always waves, waves in those charts everywhere. However, if we Just look on Apple. See, they're always waves. They're bigger waves. And they're smaller waves. can have a look here you see the bigger waves.
And if you go in you see smaller waves. That's the theory of Elliott's or Elliot and hits wave theory. That will be discussed in the next video. So see you there.