Very practical

The practical application of the golden ratio line mainly focuses on two aspects:

🔹 One is to use the amplitude of price pullbacks and rebounds to predict the price trend.

🔹 The other is to determine the price's pullback support zone and rebound resistance zone.

Fibonacci analysis is a classic and enduring trading method. Because the golden ratio levels, as important psychological price points, continuously influence traders' decisions. Think about it, when a product is directly discounted by 50% (50% pullback) or even lower, would you be tempted?

1️⃣ Use pullback and rebound amplitudes to judge trends.

By using the golden ratio line, one can judge the nature of the market and the future trend of the price based on the amplitude of the price's downward pullback and upward rebound.