What is the correct way to draw Fibonacci retracement in the context of cryptocurrency trading?

1 answers

• Dec 17, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, recommends the following approach to drawing Fibonacci retracement in the context of cryptocurrency trading. First, identify a significant price swing or trend. Then, draw the retracement levels from the highest point to the lowest point of that swing or trend. The retracement levels are typically set at 23.6%, 38.2%, 50%, 61.8%, and 78.6% of the distance between the high and low points. These levels can serve as potential support and resistance levels, helping traders make informed decisions. However, it's important to note that Fibonacci retracement is just one tool among many, and traders should consider other indicators and analysis methods to validate their trading decisions.
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