Fibonacci Retracement Strategy using Fibonacci Retracement Levels
Fibonacci Retracement is an indicator used in bitcoin trading to calculate bitcoin price retracement levels in an upward or a downward cryptocurrency trend.
Fibo retracement levels are used by cryptocurrency traders to place cryptocurrency trades and open cryptocurrency trades at a better bitcoin price after bitcoin price has resumed moving in the original bitcoin trend direction after retracing.
What are Bitcoin Trading Fibo Retracement Levels?
- 23.6% Bitcoin Trading Fibonacci Retracement
- 38.2% Bitcoin Trading Fibonacci Retracement
- 50.0% Bitcoin Trading Fibonacci Retracement
- 61.80% Fibo Retracement
38.20% & 50.00% Fibonacci Retracement Areas are most commonly used
most of the times this is where the bitcoin price retracement will reach - with 38.2% Fibo Retracement Level being the most popular and most widely used retracement level in bitcoin.
61.8% Fibonacci Retracement Level is also commonly used to set stop loss for trades opened using this bitcoin retracement strategy.
What's Fibonacci Retracement Strategy using Fibo Retracement Areas?
What's Fibonacci Retracement Strategy using Fibo Retracement Areas?
Fibonacci Retracement Strategies in Crypto Trading
Fibonacci Retracement Strategies in Crypto Trading
How Do I Draw Bitcoin Trading Fibonacci Retracements?
Fibonacci Retracement Levels tool is drawn in direction of the bitcoin trend as shown in the two Fibonacci retracement examples below:.
Fibonacci Retracement Strategy using Fibonacci Retracement Areas
In the technical analysis example illustrated below the bitcoin price is moving up between chart point 1 & chart point 2 then after chart point 2 it retraces down to 50.0% retracement level then bitcoin price continues moving up in the original upward cryptocurrency trend. Note that this cryptocurrency retracement indicator is plotted from point 1 to point 2 in direction of the Bitcoin trend (Upwards Direction).
Fibonacci Retracement in an Up Bitcoin Trend
Fibonacci Retracement Strategy using Fibonacci Retracement Levels in an Up Bitcoin Trend
Once the bitcoin price hit the 50.0% retracement level, this retracement level provided a lot of support for bitcoin price, and afterward the btcusd trading market then resumed the original upwards bitcoin trend and continued to move upwards.
For this Fibonacci retracement strategy example, the bitcoin price retracement reached the 50.0% retracement level, but most of the time the btcusd trading market will retrace up to 38.2% retracement level and therefore most of the time bitcoin traders set their buy limit bitcoin orders at the 38.2% Fibonacci retracement level, while at the same time placing a stop just below 61.8% Fibonacci retracement level.
Fibonacci Retracement Strategy using Fibonacci Retracement Areas
In the Fibonacci retracement strategy example illustrated below the btcusd trading market is moving down between chart point 1 & chart point 2, then after chart point 2 the bitcoin price then retraces up to 38.2% retracement level then it continues heading downwards in the original downward cryptocurrency trend. Note that this cryptocurrency retracement indicator is plotted from point 1 to point 2 in direction of the Bitcoin trend (Downwards Direction).
Fibonacci Retracement in a Down Bitcoin Trend
Fibonacci Retracement Strategy using Fibonacci Retracement Levels in a Down Bitcoin Trend
The above Fibonacci retracement strategy examples is a cryptocurrency retracement trading setup where the bitcoin price retraces immediately after touching the 38.2% Cryptocurrency Chart Fibo Retracement Level.
In this Fibonacci retracement strategy examples the retracement of bitcoin price reached 38.20% retracement level & did not get to 50.00% retracement level. It is always good to use 38.20% retracement level because most times the bitcoin price retracement doesn't always get to 50.0% retracement level.
This Bitcoin Retracement level provided a lot of resistance for the bitcoin price retracement, this was the best place for a trader to set a sell limit bitcoin order as the btcusd trading market quickly moved down after hitting this bitcoin price retracement area.
