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HOW TO TRADE WITH FIBONACCI RETRACEMENTS:
Trading using Fibonacci levels: is a popular technique in technical analysis that involves identifying potential support and resistance levels based on the Fibonacci sequence.
Here’s a step-by-step guide on how to trade Fibonacci retracements and extensions effectively.
1. Understand Fibonacci Basics
Fibonacci trading relies on key ratios derived from the Fibonacci sequence (e.g., 0.236, 0.382, 0.50, 0.618, and 0.786). These ratios help identify levels where price corrections (retracements) or extensions may occur.
2. Identify a Strong Trend
Before applying Fibonacci tools, identify whether the market is in an uptrend or downtrend. This is critical since Fibonacci levels are most effective in trending markets.
Uptrend: Look for higher highs and higher lows.
Downtrend: Look for lower highs and lower lows.
3. Use the Fibonacci Retracement Tool
The Fibonacci retracement tool is used to identify levels where the price may pull back (correct) before resuming the trend.
Steps:
1. Select a Swing High and Swing Low:
For an uptrend: Draw the Fibonacci retracement tool from the swing low (start of the trend) to the swing high (end of the trend).
For a downtrend: Draw from the swing high to the swing low.
2. Observe Retracement Levels: Key levels to watch: 0.382 (38.2%), 0.50 (50%), 0.618 (61.8%), and 0.786 (78.6%).
3. Wait for Price Action Confirmation: Monitor how the price reacts at these levels. If the price shows a reversal pattern (e.g., candlestick patterns like doji, engulfing, or pin bar), it may indicate the continuation of the trend.
4. Plan Your Trade
Entry:
Buy in an Uptrend: Enter near a Fibonacci support level (e.g., 61.8%) when price shows signs of reversal.
Sell in a Downtrend: Enter near a Fibonacci resistance level.
Stop-Loss:
Place a stop-loss slightly below the Fibonacci level you’re trading from (e.g., below the 61.8% retracement).
Take-Profit:
Use Fibonacci extension levels (1.272, 1.618) to set profit targets.
5. Use Fibonacci Extensions for Targets
Fibonacci extensions project potential profit levels when a trend resumes.
Steps:
1. Select a swing high and swing low (for
Fibonacci Is a Probability Tool — Not Magic:
1.Fibonacci
2.Breakout
3.Reversal
4.Elliott Wave
5.Failure Value Gap
6.Candlesticks
7.Heikin Ash
8.Moon Phases
9.Renko
10.Harmonic Patterns
https://t.co/QmKMfNTgG4 and resistance
12.Dynamic S&R
13.Trend lines
14.Gann Angels
15.Momentum
#Bitcoin: MVRV-Score signals that BTC is far from its top, whenever we hit the blue region, Bitcoin saw its bottom. Whenever we hit the red region of the MVRV, Bitcoin saw its top! Now check the MVRV level that is slighlty above the level of 2, this is far away from top level!
I sat down with @AethirCloud co-founder @MRRydon to discover how they're challenging tech giants with 43,000+ enterprise GPUs & 3,000+ coveted H100s.
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Big takeaways from the interview 👇