How does the Fibonacci ratio apply to cryptocurrency trading?

1 answers

• David DidenkoJan 31, 2024 · 2 years ago
  The Fibonacci ratio is widely used in cryptocurrency trading to identify potential price levels where the market is likely to reverse or continue its trend. Traders plot the Fibonacci retracement levels on their charts and look for confluence with other technical indicators or chart patterns. For example, if the 50% Fibonacci level coincides with a trendline or a previous support level, it adds more weight to that level and increases the probability of a price reaction. The Fibonacci ratio is not a crystal ball, but it provides traders with a framework to analyze price movements and make more informed trading decisions. At BYDFi, we also use the Fibonacci ratio as one of the tools in our technical analysis toolkit to assist our traders in making better trading decisions.
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