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Understand the indicators like a professional.
๐ Fibonacci โ the golden levels from which whales buy ๐
It's not magic. It's mathematics. And very precise.
๐ These levels reveal to you where to buy the dip before the increase begins!
And our topic today: Fibonacci Retracement โ the hidden map of market pullbacks
๐ง What is Fibonacci Retracement?
A tool that identifies potential retracement areas based on strong price movement.
Based on Fibonacci ratios:
โก๏ธ 23.6% โ 38.2% โ 50% โ 61.8% โ 78.6%
๐ก The 61.8% ratio is called the golden ratio โ this is where smart money usually buys quietly.
๐ How does it work?
Identify a strong upward or downward price movement
Draw Fibonacci levels from the lowest point to the highest point ( or vice versa )
Monitor the price's interaction with key levels, especially 38.2%, 50%, and 61.8%.
๐ How do you use it in trading?
โ Use Fibonacci levels to identify entry areas during pullbacks.
โ Integrate it with support/resistance or candlestick patterns or indicators like RSI
โ It is preferable to use it in clear bullish or bearish markets.
๐ซ Do not use it in sideways or volatile markets โ wait for a clear structure!
๐ Professional Trading Strategy:
Wait for the breakout โ then pull back
Identify Fibonacci levels โ and look for confluence with the price structure
Enter near the 50%-61.8% area
Place the stop loss below 78.6%
Take profits at the previous high point or upcoming resistance.