BITCOIN Fibonacci
So the impulse move acts as if it's taking a big breath in, and then the retracement is the breath out. This collection of impulses and retracements then leads to higher highs etc.. all being formed, creating our trend. In this case it is the retracements we are concerned with, and Fibonacci is a tool used to figure out areas in the market where price may stall or retrace to before continuing its course. It can be seen as a sort of support and resistance. It is based on 'the golden numbers' that are seen in all of the universe, not just in forex. These numbers are ranging from 0-1; 0, 0.236, 0.382, 0.5, 0.618, 0.786,1. So we are looking for a key level at which we think price will reach before continuing a new impulse.
Fib is a pretty simple tool to apply to your chart. Depending on what way the market is trending, will depend on where you drag your tool from. So If we are in an uptrend like above, are are going to drag our fib tool from one Low to the next High.
So when you drag the tool, the fib levels will appear. Now we don't know what level it will definitely bounce off of, but it gives us a clue as to the likely possibilities. Certain currency pairs will favour certain levels. You may find that the 61.8 and the 78.6 levels are good places to look, and currencies will favour these to rebound off more so than the other numbers. An institutional level is the 79.0 level and is not found on a normal default Fibonacci. You can edit the numbers in your fib by selecting settings and adding in the 79.0. This can give really accurate entries if used correctly along with other confirmations.
INSTITUTIONAL -
institutional is a style in which the banks and market makers trade.
I learn a lot from my mentor!
Fib is a pretty simple tool to apply to your chart. Depending on what way the market is trending, will depend on where you drag your tool from. So If we are in an uptrend like above, are are going to drag our fib tool from one Low to the next High.
So when you drag the tool, the fib levels will appear. Now we don't know what level it will definitely bounce off of, but it gives us a clue as to the likely possibilities. Certain currency pairs will favour certain levels. You may find that the 61.8 and the 78.6 levels are good places to look, and currencies will favour these to rebound off more so than the other numbers. An institutional level is the 79.0 level and is not found on a normal default Fibonacci. You can edit the numbers in your fib by selecting settings and adding in the 79.0. This can give really accurate entries if used correctly along with other confirmations.
INSTITUTIONAL -
institutional is a style in which the banks and market makers trade.
I learn a lot from my mentor!
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