It is suggested to exercise a Pitchfan after the first wave of the trend has passed and the correction has evidently started.
To draw a Pitchfan, its first and second aspects have to be set to the extreme aspects of the trend, and the third point should be set to the extreme point of the first correction wave.
In the uptrend, draw a pitchfan from the lowest trend point to the highest, while, in the downtrend, from the highest trend point to the lowest.
Once the fundamentals are established, the fan lightning bolts corresponding to the Fibonacci levels appear on a chart and represent sloping lines of . The cost surfaces around such lightning bolts are estimated surfaces from which cost can turn around or make a relevant bounce.
The whole logic of working with a pitchfan is based on an easy initiative: if the cost has rebounded from the grade, it is possible that the correction will culminate and the trend will continue. If the cost has broken the first resistance, it should wait for the next grade test.
Pitchfan is commonly used in conjunction with other drawing tools: , , Fibonacci Time Zone, and others. It makes it possible to detect the most powerful surfaces from which cost can modify and obtain a more strict commercial signal.
Example of Use:
This analysis is done using Fib Retracement and assimilating that BTC falls back to classic levels of all 0.786 Fibonacci cycles. This can be found in our long-term BTC analysis.
We trace the classic ABC . Be or , you should already master this. Because you have studied the previous parts. This should not be difficult for you.
Once understanding this. What do I mean by Fibonacci 0.786.
As we know, Pitchfan is a tool to use with Fibonacci, among others. So we must complement each other to have fundamentals of how to use it.
In each cycle, PiCycle BTC usually falls to 0.786 Fibonacci on a regular basis. It is something classic, so if we apply this base. Along with PitchFan.
Here we put some historical things. I play PiCycle. Retracement to 0.5 Fibonacci, Psychological Zone.
Then final pullback to 0.786 Strong Support. But as we know, each cycle is longer. Which makes each time a hike is longer. And slower.
So knowing this, the current cycle may take longer to fall, or rise. Likewise.
Also, the more capital comes in, the more liquid the cryptocurrency becomes. So this theory could be reduced to falls from 0.382,0.5,0.618 to 0.786. That is, to reduce its fall because there is more capital and people within this. Which will make history perhaps not repeat itself. But suppose that this cycle liquidity allows a decline to 0.618-0.786
Then our idea would be like this.
Expecting a pullback in the 25-16k range. As a basis that this cycle is "Different".
If you like the content, please leave a comment.