The Art of Fibonacci
Updated
Bitcoin has been on the rise, and I would like to share my Master Fib.
This angled fibonacci structure encompasses the entirety of Bitcoin's history
and can be used to help discover price action patterns,
facilitating future trade decisions.
The chart can be useful on both logarithmic and linear price scales.
This idea highlights the fib structure on the log scale.
This particular fibonacci-based structure utilizes the following levels :
0, 0.214, 0.236, 0.35, 0.382, 0.5, 0.618, 0.65, 0.764, 0.786, and 1,
and extends 20 levels above and below 0.
The core channel from which the structure is built is established using the following 3 points:
These 3 points create the core channel of the master structure:
The final version of this chart has been optimized for, and makes use of, the 10 day timeframe.
While I personally prefer using this chart on a smaller timeframe for everyday use,
the 10 day timeframe was chosen as a suitable balance of factors, including the following:
maximizing the amount of bitcoin historical data and fib data displayed
maximizing chart clarity at all zoom levels
maximizing visibility of price action reactions
maximizing published idea usefulness lifespan
When viewing the fib structure on alternate timeframes,
reactions in price can be seen as high as the monthly timeframe,
all the way down to the 1 minute timeframe.
Utilizing various timeframes can help display more pronounced, obvious, or acute reactions to fib levels.
1day price action fib reaction (April 2018 - July 2019)
1hour price action fib reaction (April 3/4 2022)
1min price action fib reaction (March 5 2024 - 5 days ago)
Even on the 10 day timeframe, reactions can be seen as far back as December 2009... bouncing off the 6.214!
There are many such reactions to this fib structure throughout the entire history of bitcoin.
What's amazing is that the 3 points used to create the structure are from December 2017 to November 2021!
So, let's take a quick look at some of the reactions in price to some of the various fib levels.
Doing this will add validity to the effectiveness and usefulness of the fibs.
And finally, here's a look at where we are today, on the linear scale, just before the 10day candle close:
Now that we have established some validity of the fib structure, we can use it to help us make future trading decisions, particularly when the price of bitcoin approaches, rejects, breaks through, or retests the various levels.
Does, and will, bitcoin always react to every level? No.
But I think this is one of the best bitcoin fib structures I've seen that encompasses every single displayed candle while maintaining such accuracy and effectiveness.
Its influence on the bodies and wicks of past and present candles can be seen.
I think it is likely to guide and influence future candles.
I estimate that the further above or below that price is from the core channel,
the less accurate and influential the levels and angles will be.
I also estimate that the further away we are, in time,
from the 3 points that build the core channel,
the less accurate and influential the levels and angles will be.
That being said, we, being humans, only have so many 10 day candles left, so... yeah.
*Bonus*
Keep zooming into the light
(on the chart)
Thank you for checking out my idea!
I hope that you like it and find it useful.
If you do, please give it a boost.
And feel free to comment.
//Durbtrade
This angled fibonacci structure encompasses the entirety of Bitcoin's history
and can be used to help discover price action patterns,
facilitating future trade decisions.
The chart can be useful on both logarithmic and linear price scales.
This idea highlights the fib structure on the log scale.
This particular fibonacci-based structure utilizes the following levels :
0, 0.214, 0.236, 0.35, 0.382, 0.5, 0.618, 0.65, 0.764, 0.786, and 1,
and extends 20 levels above and below 0.
The core channel from which the structure is built is established using the following 3 points:
These 3 points create the core channel of the master structure:
The final version of this chart has been optimized for, and makes use of, the 10 day timeframe.
While I personally prefer using this chart on a smaller timeframe for everyday use,
the 10 day timeframe was chosen as a suitable balance of factors, including the following:
maximizing the amount of bitcoin historical data and fib data displayed
maximizing chart clarity at all zoom levels
maximizing visibility of price action reactions
maximizing published idea usefulness lifespan
When viewing the fib structure on alternate timeframes,
reactions in price can be seen as high as the monthly timeframe,
all the way down to the 1 minute timeframe.
Utilizing various timeframes can help display more pronounced, obvious, or acute reactions to fib levels.
1day price action fib reaction (April 2018 - July 2019)
1hour price action fib reaction (April 3/4 2022)
1min price action fib reaction (March 5 2024 - 5 days ago)
Even on the 10 day timeframe, reactions can be seen as far back as December 2009... bouncing off the 6.214!
There are many such reactions to this fib structure throughout the entire history of bitcoin.
What's amazing is that the 3 points used to create the structure are from December 2017 to November 2021!
So, let's take a quick look at some of the reactions in price to some of the various fib levels.
Doing this will add validity to the effectiveness and usefulness of the fibs.
And finally, here's a look at where we are today, on the linear scale, just before the 10day candle close:
Now that we have established some validity of the fib structure, we can use it to help us make future trading decisions, particularly when the price of bitcoin approaches, rejects, breaks through, or retests the various levels.
Does, and will, bitcoin always react to every level? No.
But I think this is one of the best bitcoin fib structures I've seen that encompasses every single displayed candle while maintaining such accuracy and effectiveness.
Its influence on the bodies and wicks of past and present candles can be seen.
I think it is likely to guide and influence future candles.
I estimate that the further above or below that price is from the core channel,
the less accurate and influential the levels and angles will be.
I also estimate that the further away we are, in time,
from the 3 points that build the core channel,
the less accurate and influential the levels and angles will be.
That being said, we, being humans, only have so many 10 day candles left, so... yeah.
*Bonus*
Keep zooming into the light
(on the chart)
Thank you for checking out my idea!
I hope that you like it and find it useful.
If you do, please give it a boost.
And feel free to comment.
//Durbtrade
Note
Nice pop right through the 0.65 (orange) and 0.0618 (blue) zone on the linear scale.1hour view:
Note
Eclipse update (1day log)
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