Most people drawing Fibs on FinX are measuring the wrong thing.

They pick a random high and low, read the target off the wrong tool, and draw a decade of price on a linear chart. Then they wonder why price ignores their levels.

The levels are fine. The drawing is the problem.

The last few issues gave you the levels for each wave. This one shows you how to draw them so they actually line up.

Before the charts: two 1-1 mentorship places are open. Details at the bottom.

Use the right tool

There are two Fibonacci tools, and they do different jobs.

The Fib retracement takes two clicks, swing low then swing high. It measures how far price pulls back against a finished move. Use it for wave 2, wave 4, and the pullback after a full five waves.

The trend-based Fib extension takes three clicks. It projects where the next wave is heading. Use it for every wave 3, wave 5 and wave C target. For wave 3, click the start of wave 1, the end of wave 1, then the end of wave 2.

This is the mistake that costs people money. Read the 1.618 off the retracement tool and you are measuring from the start of wave 1. The trend-based extension measures from the end of wave 2. Those are two different prices, and only one of them is your target.

Take a wave 1 from 100 to 150, with wave 2 holding the 0.618 at 119.10. The retracement tool puts the 1.618 at 180.90. The extension puts it at 200. Sell at 180.90 and you miss the last 19 points of wave 3.

Anchor it properly

Draw it from the wrong points and every level on the chart is wrong.

• Anchor wick to wick. Price traded at the wick, so the wick is the true high or low, not the candle body.
• Draw in the direction of the move. Uptrend, swing low to swing high. Downtrend, swing high to swing low.
• Only use meaningful swings. Draw Fibs on every small wiggle and every price on your chart starts to look important.
• Draw the higher timeframe first. Weekly before daily, daily before the 4 hour.

Stocks gap, and sometimes your swing high is a gap candle with no wick to anchor to. Anchor to the extreme of that candle, then check whether price has respected the levels. If it has not, redraw from the last candle that traded through the area normally.

Check the scale

One quick one. On weekly and monthly charts, or any move of several hundred percent, switch the chart to log scale before you draw. A linear Fib on a multi-decade move gives you levels price ignores. On shorter timeframes it makes no real difference.

Levels are zones, not lines

A Fib level is an area, not an exact price. Price often pokes through a level before it turns. A wick through the 0.618 does not kill it. Watch where the candle closes.

These are the retracement zones I use, each with a wide range and a sweet spot:

• Wave 2 ends between the 0.5 and 0.786, most often the 0.618 to 0.786.
• Wave 4 ends between the 0.236 and 0.5, most often the 0.382 to 0.5.
• The 0.886 can still hold, but a wave 2 that deep tells you the impulse is weak. Treat it as low conviction.
• The 1.0 is invalidation. Wave 2 has retraced all of wave 1, and there was no wave 1.

And the extension targets:

• The 1.618 is the primary wave 3 target. Have it marked before you enter.
• The 1.272 is where a moderate wave 3 can stall.
• The 2.0 to 2.618 means wave 3 is extending. If price is running that far, check you are counting the right degree.

Where you are wrong: price closes through the bottom of your zone, not just wicks through it.

A quick word

That is how you draw them. The hard part is trusting a level live, on your own chart, when price is wicking through it and every instinct says sell.

Most people never close that gap. More on that at the bottom

Confluence

One Fib level is interesting. Two or three landing on the same price is a signal.

Say the 0.618 retracement of a full impulse sits at 45. The 1.0 extension of wave C also lands at 45. The 200 WMA runs through the same area. Three separate calculations pointing at one price. That is where I want to be a buyer.

My favourite way to find it is after a full five waves:

1. Draw a retracement across the whole 1 to 5 move. Mark the 0.382, 0.5 and 0.618.
2. Wait for waves A and B to form.
3. Draw the trend-based extension from the start of A, to the end of A, to the end of B.
4. Where the 1.0 to 1.618 of wave C lands on one of those retracement levels, that is your zone.

My minimum is two Fib levels in the same zone before I call it high probability. A moving average, a trendline or old support on top makes it stronger.

When timeframes disagree, the higher one wins. If the hourly 0.618 sits at one price and the weekly 0.618 sits 2% lower, price usually reaches for the weekly.

And the rule from email two still applies. I do not buy the level. I buy the reaction to it. The zone tells you where to watch. Price tells you when to act.

A real one

This is $COIN from spring 2025.

After topping at ① in December 2024, it corrected in three waves. A, B, then a C down into April 2025.

Look at where wave C finished. Three things sat in the same zone:

• The 0.618 retracement of the whole wave ① move, at $154.72.
• Horizontal support between roughly $140 and $160, the same area that held the wave 4 low in September 2024.
• The 200 WMA, running straight through it.

Price wicked below the 0.618 into the bottom of the zone, then turned. RSI printed a higher low while price made a lower low. Bullish divergence, and the reaction I wait for before buying.

From there $COIN rallied over 200% in under four months, to $444.

That rally went straight past the start of the correction at ①. An expanded wave B, the same structure from email four.

The checklist

Before I trust a Fib level, I run through this.

• Am I using the right tool? Retracement for pullbacks, trend-based extension for targets.
• Did I anchor wick to wick, on a meaningful swing?
• Did I draw it in the direction of the move?
• Is the chart in log scale for a long-term move?
• Did I draw the higher timeframe first?
• Am I treating the level as a zone, and watching the close?
• Are at least two levels stacking in the same area?
• Is there a moving average, trendline or old support there too?
• Am I waiting for a reaction, or buying the level blind?

If the levels do not line up with anything price has done before, check your anchors before you blame the Fibs.

Still here?

Most people don't get this far. That tells me something about you.

Remember the gap I mentioned halfway through, between knowing where a level is and trusting it live? That gap is what my 1-1 mentorship is built around.

Eight weekly sessions, just you and me, on your own charts. You learn to read a chart the way I read one, and to call it live on your own. There's homework every week.

It's the premium end and priced accordingly. I only take a few people at a time, and there are two places left.

Current prices hold for anyone who places a deposit by 31 October. They go up after that.

There's no launch post coming. No thread, no announcement. Just this, to the people who read to the bottom.

If you're interested, reply "mentorship". I'll send you a few short questions and, if it's a fit, a plan built around your answers. No calls, no pressure.

Your turn

This is email six. Diagonals are still on my list. Tell me what else you want in email seven. Most requested topic wins.

Drop a direct reply or a comment under any post with suggestions.

Missed the last five? They're here: https://echoanalysis.kit.com/

Echo Analysis

Everything above is my own analysis and my own positioning. It is not financial advice and it is not a recommendation to buy or sell anything. Do your own research and manage your own risk.