Price action has been rejected from 88.6% - 78.6% range, 15M overbought. Ttarget at 14.6% of Fibonacci retracement (28.7k).
Why 14.6% (.146) and 88.6% (.886) are important levels on Fibonacci retracement? The 14.6 Fibonacci ratio, wich has a high mean of assertivity, is mirroned by 88.6, which has become an important entry level and stop loss in the market. 88.6 = 1 - X, X = 14.6. These are hidden levels on the standard scale. But you can add them manually.
As you can see on chart, my fave way to use the Fibonacci Retracement is setting the .50 level at the pivot point** that precedes a pullback, i.e. the lowest low of the first downtrend. The price generally tends to retrace at least to the 0.707* level, which is another hidden level. The most common case in the crypto market, according to my experiences, is the price going into the zone between 0.886 and 0.786. In many cases touching 88.6, which can be considered a conservative point for a stop loss. If the price does not retrace from this zone, then a potential trend reversal can be considered. I have considered the range between 88.6 and 78.6 to be a 'short zone', that is, a zone where I usually wait for a reversive price action, or you could say a potential reversal zone.
When price follows the trend after retracing then I consider 14.6% as my potential target. Means that tendence continues.
This complete zig zag movement is what we call a swing, upward or downward.
*0.707 (70.7%) is the square root of 0.5 Fibonacci ratio, wich is a ratio between 1 and 2.
**Pivot points (some call them "swing points") are those areas where important short term reversals take place.
Okay, let's see what happens during this trade.
Thanks for your attention.
Why 14.6% (.146) and 88.6% (.886) are important levels on Fibonacci retracement? The 14.6 Fibonacci ratio, wich has a high mean of assertivity, is mirroned by 88.6, which has become an important entry level and stop loss in the market. 88.6 = 1 - X, X = 14.6. These are hidden levels on the standard scale. But you can add them manually.
As you can see on chart, my fave way to use the Fibonacci Retracement is setting the .50 level at the pivot point** that precedes a pullback, i.e. the lowest low of the first downtrend. The price generally tends to retrace at least to the 0.707* level, which is another hidden level. The most common case in the crypto market, according to my experiences, is the price going into the zone between 0.886 and 0.786. In many cases touching 88.6, which can be considered a conservative point for a stop loss. If the price does not retrace from this zone, then a potential trend reversal can be considered. I have considered the range between 88.6 and 78.6 to be a 'short zone', that is, a zone where I usually wait for a reversive price action, or you could say a potential reversal zone.
When price follows the trend after retracing then I consider 14.6% as my potential target. Means that tendence continues.
This complete zig zag movement is what we call a swing, upward or downward.
*0.707 (70.7%) is the square root of 0.5 Fibonacci ratio, wich is a ratio between 1 and 2.
**Pivot points (some call them "swing points") are those areas where important short term reversals take place.
Okay, let's see what happens during this trade.
Thanks for your attention.
