When determining the pullback low buying point, the Fibonacci sequence is a commonly used reference for many traders. This involves key ratio points such as pullbacks of 0.382, 0.50, 0.618, 0.786, etc.
These Fibonacci points can be clearly derived simply by drawing.
Of course, even without the aid of drawing, the formula can also accurately calculate (I rarely use a computer, so I don't particularly like using drawing methods).
For example, if the high point of Ethereum (ETH) in the morning was 4024, when calculating the pullback to the 0.382 point, the formula is: highest point in 24 hours - (highest point - lowest point) × 0.382, which is 4024 - (4024 - 3835) × 0.382 = 3951.
When calculating the pullback to the 0.50 point, the formula is 4024 - (4024 - 3835) × 0.50 = 3929.5, and the actual market price happened to pull back to this position, which is astonishingly accurate.
After completing the pullback to the current point, the next step usually requires focusing on the 0.618 point.
Generally speaking, stronger support often appears in the vicinity of 0.618, which is extremely critical for judging subsequent market trends and trading decisions, making it worth traders' close attention and in-depth study.
