📝 How to use the Fibonacci tool in trading?
⚪ Fibonacci in the rising trend.
✔️ Let us take an example of how to use Fibonacci in trading in an upward trend. We will first start with the Fib Retracement tool. This tool helps you determine the places where the price can fall in order to enter into buying deals at the time of the rise, but first, look below to learn about the most popular settings for this tool, which you can easily find in the Trading View application tools.
⚪After you prepare, determine the trend that dominates the market in the long term. Currently, for example, in the long term, the dominant trend in the crypto market is upward, especially Bitcoin. However, in the short term, the market is subject to a correction and therefore do not fall into this trap#EarnFreeCrypto2024 .
⚪Use the short-term time frame only if you are a day trader and your trades do not last more than several hours. If your deals are long-term, you must adhere to the long time frame, such as the weekly frame, for example.
⚪Note in the picture above, for example, when we place the Fib Retracement tool at the lowest price point last January, when a violent decline occurred, and we place the highest point at the peak, the result appears above. We can benefit from it with some notes. Firstly, the most famous points that traders care about are three points: 0.618 point, 0.5 point, and 0.382 point.