What are some popular strategies for using Fibonacci extension and retracement in cryptocurrency trading?

3 answers

• Dec 27, 2021 · 3 years ago
  One popular strategy for using Fibonacci extension and retracement in cryptocurrency trading is to identify potential support and resistance levels. Traders can use the Fibonacci retracement tool to identify these levels and then use the Fibonacci extension tool to project potential price targets. By combining these two tools, traders can make more informed decisions about when to enter or exit a trade. It's important to note that Fibonacci levels are not always accurate, so it's crucial to use them in conjunction with other technical analysis tools and indicators.
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• Dec 27, 2021 · 3 years ago
  Another strategy is to use Fibonacci retracement levels as stop-loss levels. Traders can set their stop-loss orders just below the Fibonacci retracement levels to protect their positions in case the price reverses. This strategy can help minimize losses and protect capital in volatile cryptocurrency markets.
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• Dec 27, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, recommends using Fibonacci retracement and extension levels as a guide for identifying potential price targets and support/resistance levels. Traders can use these levels to plan their trades and set profit targets. However, it's important to remember that Fibonacci levels are not foolproof and should be used in conjunction with other technical analysis tools and indicators for more accurate predictions.
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