At 16:00 on December 16, AICoin's editor conducted a graphic sharing of the 'Fibonacci Measurement Method'; below is a summary of the live content.
In this live broadcast, the research institute will continue to focus on market trends, profit tools, bottom-fishing during an upward trend, and the strongest auxiliary indicator: Fibonacci!
1. Assignments.
First, the host assigned last time's homework: arbitrage and AI grid, along with the corresponding grid parameters.
1. Arbitrage.
The host's 30,000 USDT capital this week continues to be allocated to the arbitrage sector.
This week's arbitrage positive funding rate still accounts for the majority, so the host's profits continue to rise.
If anyone has large funds, you can continue to pay attention to the arbitrage sector, as the positive returns from arbitrage are evident.
Cross-exchange arbitrage can also be played, but currently the price difference across exchanges is not very large, making it quite difficult to profit. If you have a good opportunity, you can share it in the AICoin forum~
The host also recommends that everyone research funding fee arbitrage and cross-period arbitrage; students with conditions can study on-chain and off-chain arbitrage~
2. AI grid.
The host previously mentioned that after breaking through 100,000, the host adjusted the grid to be between 96,000 and 106,000.
It has been running for 20 days now; let's look at the results.
This AI grid is also very high-frequency, and the profit curve rises steadily.
AI grid is also worth making your idle money active!
Of course, the above two assignments from the host are testing funds, aimed at exploring for students in the live broadcast room.
3. Summary.
First test fund: 30,000 USDT, running arbitrage, funding fee arbitrage.
Second test fund: 700 USDT, running the AI grid.
Both assignments are currently performing well, having explored these two tools for students, and both are making money.
If the second AI grid breaks, the host will adjust the grid's upper and lower limits again, and will continue to explore for students, giving everyone assignments.
Currently, it is highly recommended that everyone use the arbitrage section and AI grid on the PC client~
From the host's fund allocation, it can also be seen that the arbitrage sector is more suitable for large funds, providing stable profit and ensuring the stability and growth of one's own capital. The grid tool shows obvious returns, but you need to spend more effort studying the grid, and if the grid breaks, adjustments are needed. Both of these are excellent tools for making money!
2. Fibonacci.
Does everyone know Fibonacci?
Let's first give everyone a definition: what is Fibonacci?
The Fibonacci sequence, also known as the golden ratio sequence, was introduced by the mathematician Leonardo Fibonacci as an example of rabbit reproduction, hence also called the 'rabbit sequence', referring to a sequence: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, ...
In the investment world, Fibonacci is metaphysical because: the wonders of nature—everything is intricately related to the golden ratio.
With the Fibonacci tool, we only need to remember these numbers to use the Fibonacci tool very well.
Common numbers: 0.236, 0.382, 0.5, 0.618, 0.786.
Key points: 0.382, 0.5, 0.618.
Do you all know how to use Fibonacci retracement?
The Fibonacci indicator often used by the host is this—Fibonacci retracement segments.
To learn how to analyze market trends using Fibonacci, we must first master its drawing method, which we need to follow step by step.
First, find a segment of market movement and determine the starting point; the starting point here can be dynamic.
It's actually just one sentence: choose the highest and lowest points of a market segment and connect them.
Then many students will ask, how to choose high and low points?
It is a skill.
The technique here is: choose a trend of a large cycle, and then find low and high points in the next level cycle, find the pullback support level; if there are signals at the corresponding key pullback support levels, such as 0.382, 0.5, 0.618, then it is a good time for you to enter the market.
Additionally, there are two schools of thought when drawing: one draws only the body and shadow lines; just stick to your own style; the host is from the shadow line school.
Let's select a few market pairs and use Fibonacci to analyze them together.
Fibonacci drawing method: determine the trend, find highs and lows, connect the lines, seek support, wait for signals, enter the market - profit, freedom 👍.
Let's take a look at BTC's Fibonacci, and how we should draw it.
We start from the daily level, creating charts from large to small, and let's try it for each cycle.
Everyone, open BTC's candlestick chart with me; let's look at the weekly chart. What trend do you all think this is?
If you don't know whether the price will go up or down, you can look at last Monday's live broadcast, where a relatively good judgment indicator is: the DIF line.
Around this time, we can confirm that the weekly K line is confirming an upward trend.
Because its DIF line crosses above the zero axis.
Since the major level is a bullish trend, what should we do at its secondary level, namely the daily chart?
The answer is: you should connect from the low point to the high point, find the pullback support level, and enter long!
Especially in the early and mid stages of an upward trend at a large level.
In its secondary level, there are actually many such opportunities.
Because prices do not move in a straight line, there will be many fluctuations at the secondary level, and if there is a Fibonacci tool to measure...
Able to pick up many quality price levels.
Let's return to the daily line and find the highs and lows together.
From the daily chart, we have two obvious areas.
Because the weekly chart established an upward trend in February 2023.
So, in these two segments on the daily chart, they are actually both pullback fluctuations within an upward trend.
Then directly find the corresponding highs and lows.
First, let's look at Area A on the daily chart.
Let's assume today is January 15, 2024.
At this time, we see that the daily line is pulling back.
Everyone, please note: when drawing in a charting cycle, you must draw during a pullback; otherwise, the Fibonacci retracement line drawn will have no effect.
Let's connect this.
This way, the pullback segments are drawn out.
Just after a period of time, the DIF line on the daily chart broke through the zero axis.
Here is near the support level of 0.382, a beautiful position! Enter the market!
Then some students asked how to distinguish regions and how to tell if there's a pullback.
You can answer, students, set a reasonable pullback standard for yourselves:
For example, after creating a new high in this segment, there was a pullback of 3 candlesticks.
Here, it can also be tried to draw.
Because it also created a new high, as well as a pullback.
We can draw it out and take a look.
Let's push the time forward to the first circle here.
The effect of connecting lines.
It didn't return to 0.236 and continued to rise.
This drawing method is not wrong, but there are not many trading opportunities; if given to the host, they would also miss the first trading opportunity at this location.
Let's look at the second high point.
The price has reached here, which also aligns with a new high while pulling back a few candlesticks.
Moreover, there is also a very good pullback point here: MACD showed divergence.
Then its pullback will likely be more significant.
Let's erase the previously drawn chart and redraw it.
Draw well.
Let's take a look at the effects and subsequent results.
Once again, the DIF broke through the zero axis near 0.382, a good entry point.
The DIF here is an example of a signal point.
In fact, there are many other signals, such as EMA, MACD divergence, TD...
This is the method of drawing.
A student asked in the discussion area, 'Which position has a stronger support level?'
It is recommended to focus on: 0.5, 0.382, 0.618; actually, during a bull market phase, 0.382 will be more prominent. Of course, 0.382 is a support level, and whether to enter also depends on signals. The host has repeatedly mentioned that there should be clear signals near this support level.
Fibonacci is suitable for any cycle; it is a magical principle of nature. It's about determining trends in a large cycle and finding points in the next level. Fibonacci expansion is used for profit-taking planning, which we can explain later.
It is recommended that everyone can try drawing to analyze the market; if you don't understand, feel free to contact our editors for communication, or join as a pro member to understand each other~
Conclusion: Fibonacci retracement segments are very suitable for analyzing pullback support levels; signals appearing near the support level are worth entering, focusing on Fibonacci's key points: 0.382, 0.5, 0.618.
Charting skills:
1) Including shadow lines.
2) Determine the major trend of rises and falls, taking rises as an example (the DIF line breaking through the zero axis can be used as a trend judgment).
3) Secondary level trends, determine low and high points, connect the low to the high, and find signals at key points.
That's all for the live broadcast content~
Thank you all for your attention; stay tuned to our live broadcast.
In a bull market, let's explore the market together and find trading opportunities! Use AICoin well to earn a free life.
Recommended reading.
1. Mixing strategies of TD, BOLL, etc.
2. Advanced strategies for EMA indicators.
3. TD indicator profit rules.
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