My Price Action Framework: Fibonacci, a Slanted CT & My Concepts

Apoorv Dubey | SEBI Registered Research Analyst This monthly chart of Ramkrishna Forgings illustrates how I combine familiar price action tools with my own way of drawing and interpreting a structure. Here’s a step-by-step guide you can practise on your own charts: 1. Start by zooming out Open the monthly timeframe and identify a meaningful swing low and swing high. This helps you understand the larger move before studying the correction within it. 2. Add Fibonacci retracement On an upward move, I place the Fibonacci tool with 100% at the swing low and 0% at the swing high, as shown on this chart. I then mark the 38.2%, 50% and 61.8% retracement levels. Some traders refer to the 61.8% level as the “golden ratio”. These are reference areas where price may react; there is no guarantee it will reach or respect them. 3. Observe the retracement zone Here, the grey band highlights the area between the 38.2% and 50% levels. Price retraced into this region after its earlier advance and later recovered. For my analysis, a retracement into such an area gives me a location to study more closely. Fibonacci alone does not prove that a demand zone exists. 4. Map the shape of the correction The curved line is my own way of visualising the decline and recovery as a cup-shaped structure. It helps me see how the correction developed over time; it is an interpretive drawing, not a guaranteed support line. 5. Draw a slanted counter trendline — CT From the swing-high area, I draw a descending line across the corrective structure. My preference is to study a slanted CT that slopes down towards the retracement area. 6. Understand why I look at location I personally prefer studying structures after a retracement towards a potential demand area. I am less drawn to breakouts directly into a horizontal supply zone or around an all-time high, where price may encounter resistance. That is my preference, not a rule that horizontal breakouts fail or that a slanted CT breakout will work. Both can succeed or fail. 7. Read the apparent breakdown in hindsight The chart shows a sharp bearish candle near the curved base, followed by a recovery. Looking back, I interpret that sequence as a possible shakeout or failed breakdown. The chart cannot prove that “weak hands” were removed or identify who sold. At the time of the decline, the later recovery was not yet known. Only once that recovery occurred could it be considered as an observation in the wider analysis. 8. Put the pieces together For me, the framework is: Larger up move → retracement area → evolving price structure → slanted CT → observe the reaction. A cup, triangle, channel or another structure can provide context. The next step is always to observe how price behaves, rather than assume what it must do. For educational purposes only. This chart is not a recommendation to buy, sell or hold any security. Patterns, trendlines and Fibonacci levels can fail.