Bitcoin Cash .618 Yet Again
Last post on bitcoin cash and how you can use Fibonacci to make money on the bounce. Read my other posts before this one to have a solid understanding of using Fibonacci. If you've been following along then it should be easier by now. Connect the most recent low with the most recent high. Target that beautiful .618 level and boom you make a profit. So say you bought the dip and you're waiting for it to break the previous high. Well unlike the other times it doesn't. It ends up dramatically falling. So maybe you didn't make that 11% profit maybe you made 5% because you didn't realize it would dip. Maybe you held and actually lost money because you thought it would recover. Well look at the chart again and what do you notice? Where does price stop going up? Seriously stop reading and look at the chart. What did you notice? The price got rejected at the .236 level. Let me rephrase that actually, the price gets rejected EXACTLY at the .236 level. Fibonacci works as both support AND resistance. If you look closely you can actually see that it bounces off the .618, gets rejected by the .5 level, retraces BACK to the .618 and THEN gets rejected by the .382. Trading this in real time can get tricky that 's why you have to develop a strategy. Look back at the .236 and you will notice along with the .236 resistance there is a trend line. However I will cover trend lines in another post. The point is, you can't rely on one tool to give you the answers to everything. Combine what you learn into one strategy. Fibonacci, trend lines, RSI, MACD,whatever it is that you use. Create a strategy that works for you.
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