Hey guys, I'm currently using fibonnaci retracement and I take the lowest point to the highest point (that works well).
I am simply not quite sure of the right method of using the fibonnaci extension in an uptrend to find targets. Can someone please give me instructions? Thank you!
I am simply not quite sure of the right method of using the fibonnaci extension in an uptrend to find targets. Can someone please give me instructions? Thank you!
If you want the best results you need to use this on at least the daily charts or higher. Don't try and day trade with fibs especially on the M1 charts.
The way its done for crypto is exactly like it is for stocks and forex. You need to pick a local low and a local high. One example could be the low of Dec 2018 of $3100 and high of June 2019 of $13800. You need to use common points like this, and can't randomly just plot them.
The common ones are the 38.2%,50% and 61.8% fibs and you will see how they would of helped you in the past. Just remember to use them on higher timeframes.
Gotcha, thanks a lot for the information.
I usually trade the 1 and 4 hour charts. What strategy do you recommend to find targets? Past resistances?
I see you have been given a good guide above. One thing that is important with fibo is longer time frame and by that you have a very strong support and resistance you can be looking at. If you can learn the above pattern then you can help your strategy of supporting your trade with fibo.
Sounds good, thanks.
I also have another question for you guys:
When do you know the price will move towards the 1.618 ?
Good support and bigger/bullish candles at the 0.786?
