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Whale Trading

Other Indicators: A Quick Overview of Fibonacci, VR, and Context Tools

This article is a lightweight overview for the
“Other Indicators” section.

In this part of the curriculum we will work with:

  • Fibonacci retracements,
  • Fibonacci extensions,
  • Volume Ratio (VR),
  • and similar price/volume-based helpers.

The core idea is:

Instead of “Price must reverse at Fib 0.618”,
ask: “How well does this secondary tool
support the trend, support/resistance, and swing structure
that I already see?”

These tools are secondary, not primary.
They are meant to reinforce your price/pattern/volatility framework,
not replace it.

The diagram below shows:

  • left: an uptrend with a swing low–high and Fibonacci retracement zones,
  • right: the same segment with Volume Ratio (VR)
    marking stronger vs weaker participation.

In this overview we only touch the philosophy.
The details behind each side of the diagram live in:

1. What Lives Under “Other Indicators”?

1-1. Fibonacci tools

  • Fibonacci Retracement
    → takes a swing (low ↔ high) and marks retracement zones
    such as 38.2%, 50%, 61.8%.
    What matters is less the exact number and more where these zones
    overlap with key levels from
    s-r.

  • Fibonacci Extension
    → uses the length of a prior swing to project possible continuation zones
    (1.0, 1.272, 1.618 etc.).
    It works best for structuring partial take-profit and re-entry plans,
    not for “calling the exact top”.

Both topics are covered in detail in
fibonacci.

1-2. Volume Ratio (VR) and similar volume tools

  • Volume Ratio (VR)
    → summarizes “how much real money has been on the buy side vs the sell side”
    over a recent window (e.g., up-volume vs down-volume).

In vr we will look at:

  • how VR behaves inside ranges and trends,
  • how it reacts to breakouts and failed breakouts, and
  • how it ties into trap patterns from
    failure.

2. Section-Wide Philosophy for Secondary Tools

The detailed rules live in the child pages.
Here we only fix the section-wide mindset you’ll keep coming back to.

  1. Price first, tools second

    • Primary data are price, swing structure, levels, and volume.
    • Indicators here are summary/filter tools on top of that, nothing more.

  2. Prefer zones and confluence over single numbers

    • A lone Fib level or VR reading is weak evidence.
    • What matters is “Where do several tools and key levels overlap?”

  3. Avoid indicator overload

    • It’s easy to cover a chart with trend tools, oscillators, Fib, VR, Ichimoku, etc.
    • Most such setups backtest beautifully and trade poorly.

  4. Always stay inside your risk rules

    • No matter how good a secondary signal looks,
      your sizing still has to respect
      risk-management.

3. Recommended Reading Order

To get the most out of this section,
the following path usually works well:

  1. Refresh the core context

  2. Dive into the detailed “other indicators”

    • fibonacci –
      retracements, extensions, and confluence
    • vr –
      VR, breakouts, fakeouts, and traps

  3. Revisit them in strategy context

    • strategy –
      see where Fibonacci and VR actually plug into
      trend-following, mean reversion, and breakout/fakeout setups.