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How to Draw Fibonacci Channels

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BINANCE:ADAUSDT   Cardano / TetherUS

Fibonacci Channels are used to determine fibonacci support and resistance levels within an identified trend.

These channels can easily be drawn in both uptrends or downtrends to find potential areas where price action could change.

Uptrend
When drawing a Fibonacci Channel on an uptrend, a clearly identified trend needs to be established with higher lows being created.

To draw the channel, first select the two low points on the trend, and then the high point in-between them.

After the channel is drawn, the Fibonacci levels calculated can be used to help speculate price action by watching these areas as support or resistance.

Downtrend
When drawing a Fibonacci Channel on a downtrend, a clearly identified trend needs to be established with lower highs being created.

To draw the channel, first select the two high points determined by the trend, and then the low point in-between them as shown below.


Do you use Fib Channels?
If so, share your ideas in the comments below!
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Comments

That's the way to do it! Much agreed.
100 coins
+11 Reply
This is new to me, I am off to try it as FIBS are the only tool I used in my trading now.
500 coins
+5 Reply
gwenemily55 FXTraderMom
@FXTraderMom, hello
Reply
fract gwenemily55
@gwenemily55, Fib channel on btc example:
+2 Reply
@fract, I love this PRIDE version of Fibonacci! Great! :D
Reply
fract senpaicryptos
@senpaicryptos, This is not meant to be.. Anyways, as long as you appreciate :D
+1 Reply
YaminAlharbi FXTraderMom
@FXTraderMom, good work
Reply
I took a glorious nap and woke up to this. I am not disappoint
100 coins
+3 Reply
Combine this with a pitchfork and you have a true leading indicator. Near 80% probabilities that price will reverse when touching the middle or outside lines. Also continues in same direction if price zooms through median (middle line). May publish some ideas using this if anyone is interested? Its pretty cool how accurate they can be
+21 Reply
@Fontnaut I’m interested...., I don’t really understand Fibonacci levels
+1 Reply
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