LitecoinUpdated Fibonacci Restracements
For the past few weeks I've been playing with some Fibonacci Restracements in regards to predicting entry/exit on LiteCoin. This particular one seems to match up well with LiteCoin, at least in the past week it has. Curious if others have looked at something like this? I am using the fib-numbers from a FOREX strategy.
From what I have been reading, it is pretty accurate but has to be aligned with other trend analysis to verify. I've been aligning it with an ABCD wave and using C to predict D based on Fibonacci. It has been working pretty well actually. I'd like to know if anyone else has been using something like this or if you have had issues with these.
I had to setup my own Fibonacci Restracement grid, but the default is editable. So it was easy to do. As you can see, I have two ABCD waves going... but with fib retracements. If these are correct, the top price should land somewhere around the bottom $143.00. I set this up a few hours ago, when C was clearly distinguishable.
This approach seems to be a pretty conservative approach, which I assume is because it is used for FOREX. I've not done anything with this year, other than plotting it 3 to 6 hours out and seeing how close D ends up landing. It has been pretty close just about every time.
From what I have been reading, it is pretty accurate but has to be aligned with other trend analysis to verify. I've been aligning it with an ABCD wave and using C to predict D based on Fibonacci. It has been working pretty well actually. I'd like to know if anyone else has been using something like this or if you have had issues with these.
I had to setup my own Fibonacci Restracement grid, but the default is editable. So it was easy to do. As you can see, I have two ABCD waves going... but with fib retracements. If these are correct, the top price should land somewhere around the bottom $143.00. I set this up a few hours ago, when C was clearly distinguishable.
This approach seems to be a pretty conservative approach, which I assume is because it is used for FOREX. I've not done anything with this year, other than plotting it 3 to 6 hours out and seeing how close D ends up landing. It has been pretty close just about every time.
Note
It might look like it was not accurate, but it was. If you not the minor ABCD pattern, you can see that C failed because the next low value fell below. So that indicated a sell at C or to wait if you were looking to enter. It seems like that minor ABCD pattern tells you that the major one failed. Interesting that it always aligns with the fib numbers. Still try to figure out if this is a good method to use for predictions. So far so good.Note
In the comment before, I said to enter/exit at C, but I should have said the smaller A. The point of using the fib graph seems to be in identifying when C fails. In FOREX patterns, they say pick 10 pips under C for your exist when C fails. So here, that would have been between A and C, probably around 138.8 to 139 or so. That seems reasonable. Had I done that, I would have sold at $139, which would have been nice. Currently we are seeing an increase from about 133.75 to 135. That could be a new ABCD pattern. If so, when C shows up, that would be the buy in... if C fails, then exit with a stop at C or something just below.
This 24-hour run would have netted about a 1% gain.
I have no idea of this strategy is valid or not. Just posting it out here to see if it has any merit, and see if anyone else uses something similar.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.