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Fibonacci Extension

Bitcoin - Historical trap (122k then 60k in 2026)Bitcoin is in the final stage of the bullish cycle, and we want to look for the best price to sell and prepare for the 2025/2026 bear market! The best price to sell Bitcoin is at the 1.618 FIB extension or at the main long-term 2017-2021-2025 trendline. This is exactly at 122,069, as we can see on the chart. Many people are saying that it's over for Bitcoin and that Trump's post was a giant trap. I think we will see a final 2 waves on Bitcoin to form an ending diagonal wedge pattern (1-2-3-4-5). Bitcoin is in wave 3. I am also bullish because of the 50-week moving average. Historically, Bitcoin reacted to this MA very precisely. I always recommend using simple moving averages with 20, 50, 100, and 200 periods because this is what the big players are using as well. These MAs are very popular among giant institutions, banks, and investors. I think a huge altseason should kick in anytime soon now because Ethereum is very undervalued, and BTC.D needs a break as well. ETH could be a much better choice for the final 2025 pump. Write a comment with your altcoin + hit the like button, and I will make an analysis for you in response. Trading is not hard if you have a good coach! This is not a trade setup, as there is no stop-loss or profit target. I share my trades privately. Thank you, and I wish you successful trades!
BITSTAMP:BTCUSDLong
by Xanrox
79
Hedera Goes From April Highs, To ATH, To Elliot Wave Theory? Lets break down what COINBASE:HBARUSD may be setting up for a long-term scenario! We saw a impressive Bullish Rally from beginning of November 2024 that facilitated a Breakout of the April 2024 High @ .1842 to then create its All Time High @ .4010. With this Price Action going from a Significant Low to create a new Higher High, we can apply the Elliot Wave Theory which is first supported by seeing some sort of Fibonacci Retracement from the Low to New High and we see that February of 2025 delivered a Fibonacci Retracement to the Golden Ratio Zone twice to now be showing support from Bulls pushing price higher! Technically, with Wave 1 having been corrected successfully by Wave 2, both being completed, we now can expect price to give us another extension starting Wave 3, giving us a Break of the ATH created by Wave 1, to then confirm our directional bias and validate the Elliot Wave Theory. Based on the Fibonacci Extension, we can project a potential "Roadmap" price may follow while outlining the rest of the Impulse and Corrective Waves where we see Price ultimately ending Wave 5 at the Potential Range Target of ( .7571 - .89441 ) Rules: - The 2nd Wave cannot retrace the 1st Wave more than 100% - The 3rd Wave can never be the shortest of the Impulse Waves ( 1,3,5 ) - The 4th Wave cannot retrace the 3rd Wave more than 100%
COINBASE:HBARUSDLong
by Novi_Fibonacci
XAUUSD: Riding the Trade War Wave: Will We See New Highs?Hey Realistic Traders, Will OANDA:XAUUSD See New All-Time High Soon? Let's dive into the analysis... Analyzing XAUUSD price movements using Elliott Wave Theory suggests a possible significant upside in Wave 5. Wave 3 previously didn't go beyond the 1.618 Fibonacci extension, classifying it as a normal wave. Wave 4 then retraced to around the 0.618 Fibonacci level, forming a bullish descending broadening wedge pattern. The breakout from this descending broadening wedge on the 1-hour chart, combined with a golden cross in the MACD indicator, indicates the potential start of Wave 5. Since Wave 5 is expected to be extended, its movement might be greater than Wave 3. However, we conservatively expect the extended Wave 5 to reach a maximum of the 0.786 Fibonacci level. Based on these technical indicators, the price is projected to rise towards the target of 2950, and possibly the second target at 2969, as long as it stays above the critical stop loss level of 2900. Support the channel by engaging with the content, using the rocket button, and sharing your opinions in the comments below. "Disclaimer: "Please note that this analysis is solely for educational purposes and should not be considered a recommendation to take a long or short position on Gold".
OANDA:XAUUSDLong
by financialfreedomgoals101
2
Bitcoin - Dump and Pump | Crypto resurrected - next 125,000 USDLast week Bitcoin and the whole crypto market dumped like crazy, but on Sunday at the start of March, the crypto market was resurrected from the abyss! After Trump's post, the crypto market pumped in a very short period of time. But let's take a look at the technicals. The price dropped below the rectangular range but then pumped back into the range. What does it tell us? Usually, what we want to see is a breakdown of the range, retest, and continuation to the downside. In this case, the price failed to retest the range and instead went back to the range, which is a sign of strength. Currently, we want to look for a good price to buy BTC for the final stage of the bull cycle. I expect this bullish cycle to end in Q3 2025, around September. The price of Bitcoin is inside this huge ascending parallel channel on the daily chart, and as long as this channel holds, we have to be bullish. Let's take a look also at the weekly timeframe. What we can see here is a bullish hammer with an extremely long wick (reversal candle). The price also got rejected from the 20-weekly moving average. Write a comment with your altcoin + hit the like button, and I will make an analysis for you in response. Trading is not hard if you have a good coach! This is not a trade setup, as there is no stop-loss or profit target. I share my trades privately. Thank you, and I wish you successful trades!
Long
by Xanrox
93
NVDA: Fibonacci cluster support and 200MA at 126.5. NASDAQ:NVDA : Fibonacci Cluster Support at 126.5 Sets Up Potential 10% Rally to 140 Looking at NVIDIA's technical setup, I've identified a critical support zone that could launch NASDAQ:NVDA toward a significant target if it holds. Technical Analysis The current price action shows NVIDIA testing a key support zone consisting of: - Fibonacci cluster at 126.5 - 200 Moving Average support If this support zone holds, I'm targeting the next Fibonacci cluster at 140, representing approximately a 10.7% upside potential. Entry Strategy I'm monitoring two potential entry scenarios: Aggressive Entry (15-minute chart): - Wait for 8 EMA to cross above 34 EMA - Price must break above the most recent swing high - Entry on confirmation of this break Conservative Entry (30-minute chart): - Same criteria as above but on the 30-minute timeframe - Provides more reliable signals with fewer false breakouts Risk Management Stop Loss: Place stops below the 126.5 Fibonacci/200 MA support zone (approximately 124-125) Profit Target: First target at the 140 Fibonacci cluster Conflicting Indicators My analysis shows mixed signals that require caution: 1. My WillVall indicator on the weekly chart shows a potential buy opportunity at current prices, BUT it needs to change direction and move above the 15 level before confirming a long-term entry 2. Multiple timeframe squeeze indicators (Weekly, 4D, 3D, 2D) are currently in squeeze with negative momentum, suggesting downside pressure 3. According to IBD Market School methodology, the market is showing signs of correction and the buy switch is currently OFF, indicating we should avoid new long positions Trade Plan Given the current market conditions and mixed signals: - Wait for confirmation of support at the 126.5 zone - Look for entry signal confirmation on preferred timeframe - Use smaller position size due to conflicting indicators - Set clear stop loss below support (124-125) - Target the 140 Fibonacci cluster for profit taking I'll remain patient and wait for clearer market conditions before committing significant capital to this trade. The technical setup is promising, but broader market conditions suggest caution.
NASDAQ:NVDALong
by TradeVizion
Coffee Futures Outlook: Potential Corrections Ahead After HistorCoffee futures have experienced a strong upward movement, breaking their all-time high and unlocking Fibonacci-based mirroring and projection targets. However, the manner in which the price reached this level—overextended and distanced from its moving averages—combined with last month’s candlestick signaling selling pressure, suggests a high probability of corrective movements in the coming months. Should a pullback occur, it will be crucial to monitor how the price reacts upon testing the 20-period moving average.
BMFBOVESPA:ICF1!
by Luiz_soares
Bitcoin Daily Chart Over the past seven days, Bitcoin experienced a significant decline, dropping 2,440 pips before finding support around the 78,261 level. This area acted as a key zone of interest due to multiple technical confluences aligning, ultimately halting further downside movement. As a result, we are now witnessing a reaction at this level. Looking ahead, I anticipate two potential scenarios. Bitcoin could revisit this support level, forming a double-bottom structure before initiating an upward push toward 91,500. Alternatively, it may first rally toward 91,500 before facing a rejection, leading to a corrective move down to approximately 71,500. If this pullback materializes and establishes a strong base, I expect Bitcoin to gain bullish momentum, eventually setting a new all-time high in the coming months. Daily Chart Total Crypto Cap There were multiple confluences to see an reaction at 2.6T.
BITSTAMP:BTCUSD
by ChartStrategist
1
Bitcoin Threat - Last chance is now! Or crash to 40k! (-63%)Bitcoin crashed by 12% in the past few days to 86,800, exactly to the last available support of the whole bull market! This is the last support; otherwise, the bull cycle is over, and we will have a tremendous crash to 40K in 2025/2026. So why is this the last support? First, we need to look at the price action because bitcoin has been going sideways since November. We can clearly see an expanding triangle on the daily timeframe. Expanding triangles are very uncomfortable patterns for traders, as the whales take liquidity on both sides (buyers and sellers). And this is exactly what happened recently: Bitcoin crashed to 86.800 below the previous swing low and took all stop-loss orders from traders while remaining in the expanding triangle continuation pattern. Bitcoin really cannot afford another crash; otherwise, the bears will break the expanding triangle, and the bull market will end. Bitcoin must go up right now! I am bullish until the end, and I still see that Bitcoin is in an uptrend. But if the price falls below 86,800, expect 40k later in 2025/2026, so this is the last chance! What is also bullish? The price is still above the main green trendline. We want to see this trendline hold until the end of the bull market. From the Elliott Wave perspective, the price is starting last wave (5) to finish an impulse wave of higher degree. 125k is a significant resistance because of the 0.618 FIB extension. So, the threat is big for Bitcoin - 125k or 40k? Let me know in the comment section! (write 125k or 40k). Write a comment with your altcoin + hit the like button, and I will make an analysis for you in response. Trading is not hard if you have a good coach! This is not a trade setup, as there is no stop-loss or profit target. I share my trades privately. Thank you, and I wish you successful trades!
Long
by Xanrox
153
DJT - Parabolic Move IncomingNASDAQ:DJT is soon in my mind to begin the most insane of rallies. This chart for me is as clean as they come! Recent Price Action From the peak of October 2024 to recent days in February 2025 - the stock has seen a ~46% correction, in what is likely the completion of an Elliott Wave 2 correction (in X,Y,Z form). This after a bullish initial Wave 1 formation saw it go beyond even the most bullish of bullish initial price targets, in just 2 weeks flat. Price had prior to that been compressed inside a downwards-pointing wedge pattern (orange lines), since late March 2024. This is one of my most favourite bullish chart patterns. It often leads to explosive price action. After breaking out of the wedge, it is now not-only putting the finishing touches to an Inverse Head & Shoulder pattern (grey text)... but when it does so it will also complete a massive Cup & Handle formation (white arrows). Future Price Targets The initial target (T1) from this move would be $570 (20x) in a very short period. Perhaps even by end of June 2025. This would coincide with the 1.414 fibonacci level. Drawn from its initial introduction to public markets to its peak just weeks later. Thereafter, an extended 5th wave target of $1,020 (43x) could be reached sometime around late November 2025 and January 2026. This coincides with the 1.618 fibonacci level (darker blue T2 line). Price as of today has overshot the 0.382 fibonacci line and back-tested the previously-formed left shoulder. It is likely to find support here on the yellow line. Next Up... Volume has been pitiful of late. Watch it ramp-up again in the next few days, just like we saw in September 2024 when it completed its full retrace. It is my expectation that we will see rest of the markets surprising bears, with a huge reversal before March, perhaps even combined with a significant dollar devaluation. During this time when volume picks-up, a sharp reversal to the upside out of its latest wedge (dark red lines) is possible before the week ends on 28th February. If this occurs, this will likely confirm the end to Wave 2 of 5. If there is any further downside to come, the absolute worst case scenario will likely be ~$18 - coinciding with the 0.238 fib. However this is not expected, just something to be wary of. NASDAQ:DJT from here is ready to begin the most volatile of Elliott Waves, Wave 3. If volume persists, price will be drawn like a magnet to the horizontal sloping trend line in bold white. Possible Elliott Waves Wave 1 - $12 to $55 Wave 2 - $55 to $24 Wave 3 - $30 to $570 Wave 4 - $570 to $175 Wave 5 - $175 to $1,020 Ridiculous targets, right? So what could be the catalyst? With the appointment of Kash Patel, we may now start seeing legal action taken against entities & individuals involved with naked short positioning. NASDAQ:DJT even in it's short history has been a prime target for this since 2022. NASDAQ:DJT may be partially or heavily-involved with the Sovereign Wealth Fund being discussed for the United States. NASDAQ:DJT may also complete the long-rumored acquisition of Bakkt Holdings ( NYSE:BKKT ). Perhaps even obtaining a minority stake in TikTok. Short squeeze, M&A, fraudulent recovery, purchases of ETHUSD or just plain old organic price discovery - you pick your poison. But if you thought you'd seen NASDAQ:DJT reach its peak prior to the elections, be prepared to rethink your views. NASDAQ:DJT has a LOT of room to the upside still from here. Make sure at the very least, you keep this one on your watch-list. ---- Note : This post was originally published on 2nd November 2024 in the lead-up to the election. It was popular but was hidden due to an error on my part including a private indicator. It has now been updated to account for recent price action & timing.
NASDAQ:DJTLong
by DigiDavid
8
Bitcoin will +27%, ETH +139%, LTC +251%, SOL +100% (Best coins)In this analysis, we will look at 4 major coins that are good to hold for the upcoming weeks! Because alt season is starting, we want to focus on strong altcoins. Starting with Bitcoin. Bitcoin (BTC) - expect + 27% Bitcoin is in a strong uptrend (ascending channel), and as long as Bitcoin is in this channel, we are very bullish. We can expect Bitcoin to hit 125k in the near future. I know this is not a lot; that's why we want to focus on altcoins! Definitely avoid coins such as XRP or TRUMP because these coins are already pumped! Ethereum (ETH) - expect +139% Ethereum still didn't hit an all-time high in this bull cycle, which gives us a great opportunity to buy it cheap. Ethereum is definitely undervalued compared to other coins, so this is a clever buy. Technically, the price is in an uptrend and near the ascending channel support. This gives us an excellent buying opportunity for 2025. Litecoin (LTC) - expect +251% Litecoin was in a range for 3 years! That was a really long time, but currently the price is breaking out of the range and forming a bull flag. This is a very strong combo, so we definitely want to buy on the buying side. Sorry for traders or hodlers that were waiting 3 years without any profits. We are traders; we want to buy at the best moment and take profit after the pump! Solana (SOL) - expect +101% Solana is another extremely bullish altcoin, and as with the previous ones, we are also in an uptrend (ascending channel). Because the price is near the support trendline, this is a great opportunity to buy it with a tight stop loss. If you are satisfied with 100% profit and pretty low risk, you can go for it. If you want more profits, go with Litecoin or use leverage on futures SOLANA. Want to know the analysis of your altcoin? How much % ? Easy, hit the like button and write a comment with your altcoin, and I will make an analysis for you in response!
Long
by Xanrox
112
Bitcoin - No one is expecting this move! (must see)A lot of people are turning very bearish on Bitcoin, but I don't think it's time to be bearish, the bearish trend is not confirmed at all, and the price of Bitcoin should first touch the long-term major trendline (2017 -> 2021 -> 2025). You want to sell at the touch of the trendline. The second option is to use the Fibonacci extension tool and look for the 1.618 FIB. I did it for you, and the 1.618 FIB is exactly at 122,069 USD. Bitcoin is currently in the final stage of the bullish cycle that started in 2022 (15,632 USDT) and is predicted to end in 2025 (around 125,000 USDT). This was a pretty good investment, but if you are jumping in right now, you will most likely get hurt in 2025 and 2026. Let's take a look at history to see what we can expect in the next few years. Bitcoin crashed by 84% (in 2018) and 77% (in 2021). These are the classic bear market crises that Bitcoin experiences every 3–4 years. It's because we have halving events (reducing rewards for miners in BTC) every 4 years from a fundamental perspective. You may know that Bitcoin is highly volatile. History is telling us that in 2025/2026 a huge bear market and crisis are ahead. From the Elliott wave perspective, we are in the final wave (5). We can expect an ABC correction in 2025/2026 which would bring the price down to 50,000. I bring you very strong technical data that you can use on your trading decisions. In conclusion, I am currently optimistic about the price of Bitcoin for the next weeks and months. I think Bitcoin will hit 120k to 125k before we experience a major drop or flash crash. It's safe to buy/long Bitcoin, but do not forget to take profit! Write a comment with your altcoin, and I will make an analysis for you in response. Also, please hit boost and follow for more ideas. Trading is not hard if you have a good coach! This is not a trade setup, as there is no stop-loss or profit target. I share my trades privately. Thank you, and I wish you successful trades!
BITSTAMP:BTCUSDLong
by Xanrox
128
Best Fibonacci Retracement and Extension Levels for Trading In this short article, you will learn the best Fibonacci extension and retracement levels for trading Forex and Gold. I will share with you correct settings for Fibonacci tools and show you how to use & draw Fibonacci's properly on TradingView. Best Fibonacci Retracement Levels First, let's discuss Fibonacci retracement levels. Here are the default settings for Fibonacci retracement tool on TradingView. We will need to modify that a bit. We should keep 0; 0,382; 0,5; 0,618; 0,786; 1 levels 0,382; 0,5; 0,618; 0,786 will be the best retracement levels for Forex & Gold trading. How to Draw Fibonacci Retracement Levels Properly In order to draw fib.retracement levels properly, you should correctly identify a price action leg. You should underline that from its lowest low to its highest high, taking into consideration the wicks of the candlesticks. Fibonacci Retracement of a bullish price action leg will be applied from its low to its high. 1.0 Fibonacci level should lie on the lowest lie, 0 - on the highest high. Fibonacci Retracement of a bearish price action leg will be applied from its high to its low. Best Fibonacci Extension Levels Above, you can find default Fib.extension settings on TradingView. We will need to remove all the retracement levels; 2,618; 3,618; 4,236 and add 1,272; 1,414 levels. 1,272; 1,414; 1,618 will be the best Fibonacci Extension levels for trading Gold and Forex. How to Draw Fibonacci Extension Levels Properly Start with correct identification of a price action leg. Draw the Fib.Extension levels of a bearish price movement from its high to its low . Draw the Fib.Extension levels of a bullish price movement from its low to its high. I apply the fibonacci levels that we discussed for more than 9 years. They proved its efficiency and strength in trading different financial markets. Learn to combine Fibonacci levels with other technical analysis tools to make nice money in trading. ❤️Please, support my work with like, thank you!❤️
FOREXCOM:XAUUSDEducation
by VasilyTrader
2
Bitcoin - Buy now! Ready to pump to 125 000 (alt season)I recommend buying Bitcoin as the price is ready to go much higher in February. The current price is 98,000, and I expect Bitcoin to hit 111,000 in the immediate short term. 111k is a strong resistance because it's the top of the ascending parallel channel. Bitcoin has been in this channel for 91 days since November 2024. Then later this year in summer, Bitcoin will reach 125k. But we should focus on altcoins in the next months! Why? Because a huge alt season is starting! Let's take a look at the BTC.D (Bitcoin Dominance) chart because this is the major indicator of altcoin seasons. As per my analysis, the price recently hit a strong resistance and needs to go down to 48%. We could experience the greatest alt season in years, so be ready! Make sure you have the right altcoins. Ethereum is definitely one of the altcoins that will outperform Bitcoin in the next months. I am very bullish on Bitcoin and on the overall crypto market for the next weeks and months! Now is the time to buy, but let me know in the comment section, what do you think? Write a comment with your altcoin, and I will make an analysis for you in response. Also, please hit boost and follow for more ideas. Trading is not hard if you have a good coach! This is not a trade setup, as there is no stop-loss or profit target. I share my trades privately. Thank you, and I wish you successful trades!
Long
by Xanrox
213
Bitcoin Seasonality - Best Month (October) and Best Day (Monday)It's very important for every Bitcoin trader to know its seasonality because this will significantly increase the probability of successful trades. I have been trading Bitcoin for almost 10 years, and I successfully use seasonality patterns to predict Bitcoin price movements. For example, you don't want to go long on Bitcoin during August or September; that's probably a very bad idea. The biggest market crashes usually happen in September. But you definitely want to go long in October or April, as these months are the most promising. Knowledge of these patterns will give you an advantage over standard retail traders. Every trade matters. Average return by Month (%) January: +5.1% February: +12.1% March: +4.8% April: ˇ+18.7% May: +14.2% June: +4.4% July: +6.1% August: -3.1% September: -8.4% October: +22.2% November: +17.9% December: +7.3% Average return by Weekday (%) Monday: +0.63% Tuesday: +0.18% Wednesday: +0.54% Thursday: +0.40% Friday: +0.37% Saturday: +0.45% Sunday: +0.10% Currently I am bullish on Bitcoin as the price is in an uptrend and the bear market is not confirmed; I expect Bitcoin to hit 115k probably at the end of February. What I also expect is an alt season - alt season is starting right now! So it's time to buy some altcoins. Ethereum should outperform BTC in the next weeks as well. Write a comment with your altcoin, and I will make an analysis for you in response. Also, please hit boost and follow for more ideas. Trading is not hard if you have a good coach! This is not a trade setup, as there is no stop-loss or profit target. I share my trades privately. Thank you, and I wish you successful trades!
Education
by Xanrox
43
Understanding Fibonacci ExtensionsUnderstanding Fibonacci Extensions Have you ever noticed that market movements often occur in repeatable patterns? Well, that’s where Fibonacci extensions come into play. Join us in this article as we dive into the world of Fibonacci extensions and discover how they can be a strong addition to your trading arsenal. A Primer on Fibonacci Ratios Fibonacci ratios originate from the Fibonacci sequence, where each number is the sum of the two preceding ones (e.g., 0, 1, 1, 2, 3, 5, 8, 13, 21, 34). The key ratio, known as the Golden Ratio, is approximately 1.618. This is calculated by dividing a number in the sequence by its immediate predecessor (e.g., 34 ÷ 21 ≈ 1.619). Conversely, dividing a number by the next number yields approximately 0.618 (e.g., 21 ÷ 34 ≈ 0.618). In trading, these ratios are used to identify potential support and resistance levels through Fibonacci retracements and extensions: - Fibonacci Retracements. These indicate where the price might pull back within an existing trend. Common retracement levels are 23.6%, 38.2%, 50%, 61.8%, and 78.6%. They are derived from the ratios between numbers in the sequence and are applied to measure potential correction points. - Fibonacci Extensions. These project potential price targets beyond the current range. Key extension levels include 100%, 161.8%, 200%, 261.8%, and 423.6%. They are calculated by extending the Fibonacci ratios past the 100% level to anticipate where the price might move following a retracement. Note that these ratios can be expressed as either integers or percentages, e.g. 0.618 or 61.8%. What Are Fibonacci Extensions? Fibonacci extensions (also known as Fibonacci expansions or Fib extensions) are a technical analysis tool that allows traders to determine potential levels of support and resistance for an asset’s price. Like regular support and resistance levels, they are considered as areas of interest rather than where the price will turn with pinpoint precision. They’re most frequently used to set profit targets, although they can also be used to find entries. Fibonacci extensions can be applied to any market, including forex, commodities, stocks, cryptocurrencies*, and more, and work across all timeframes. While not foolproof, using the Fibonacci extension tool combined with other forms of technical analysis might be an effective way to spot potential reversal points in financial markets. Fibonacci Retracements vs. Extensions Both Fibonacci retracements and extensions are based on the Fibonacci sequence and the Golden Ratio, but they are used to measure different things in the market. The former shows support and resistance levels during a pullback from a larger move. The latter measures the potential levels of support and resistance for an asset's price after a pullback has occurred. As shown in the chart above, the Fibonacci retracement tool can be applied to identify where the price may pull back to – 50% in this scenario. Then, the Fibonacci extension tool is used to plot where the price could end up beyond this pullback. The 100% and 161.8% levels posed significant resistance, causing the price to reverse. It’s easy to see how both tools can be used in conjunction to build a strategy. Generally speaking, traders tend to enter on a pullback to one of the key retracement levels, and then take potential profits at the extension levels. However, either tool can be used to find areas suitable for entries and exits. Fib Extensions: How to Use Them in a Trading Strategy If you’re wondering how to use Fib extensions in your own trading, here are the steps you need to follow. - Click to set the first point at a major swing low if expecting bullishness or swing high if expecting bearishness. - Place the second point at a swing in the opposite direction. - Put the third point at the low of the pullback if a bullish move is expected or the high if a bearish move is expected. That’s it! You now have an idea of where price may reverse as the trend progresses, allowing you to set profit targets or plan entries. You can also double-click the tool to adjust it to your preferences, like removing certain levels and changing colours. Bullish Example In this example, we have a swing low (1) followed by a swing high (2) that makes a retracement (3). These three points are all we need to plot a Fibonacci extension. Notice that the 138.2% level didn’t hold, showing that price isn’t always guaranteed to reverse in these areas. However, the wicks and sustained moves lower at the 100% and 161.8% areas gave traders confirmation that a reversal might be inbound. Bearish Example Here, we can see that each of the three areas prompted a pullback. Some traders might not consider the 138.2% area valid to trade. However, the most common way to get around this is to look for confirmation with a break of the trend, as denoted by the dotted line between extensions. Once the price gets beyond that swing high (intermittently breaking the downtrend), traders have confirmation that what they’re looking at is likely the start of a reversal. Some traders believe that if the price closes beyond a level, it’ll continue progressing to the next area. While this can sometimes be the case, it can just as easily reverse. Here, the price briefly closed below the 161.8% level before continuing much higher. How Can You Confirm Fib Extensions? While Fibonacci extensions suggest potential areas where price movements may reverse or stall, traders often seek additional confirmation to enhance their confidence in these levels. Here are some methods traders typically use to validate Fib extension levels. - Confluence with Other Fibonacci Levels. Traders can look for alignment between Fibonacci extensions and retracements from different timeframes or price swings. This overlap may indicate a more significant level where the price could react. - Support and Resistance Zones. If a Fibonacci extension level coincides with established support or resistance areas on the chart, it can reinforce the likelihood of a market response at that point. - Candlestick Patterns. Observing specific candlestick formations, such as doji, hammer, or engulfing patterns at Fibonacci extensions, can provide insights into potential reversals or continuations. - Technical Indicators. Incorporating indicators like moving averages, RSI, or MACD can help confirm the validity of a Fibonacci extension level. For example, if the RSI indicates overbought conditions at a key extension level, traders might anticipate a pullback. - Trendlines and Chart Patterns. Aligning Fibonacci extensions with trendlines or chart patterns like the Head and Shoulders can offer additional confirmation. Traders often find that extension levels intersecting with these tools carry more significance. - Volume Analysis. An increase in trading volume near a Fibonacci extension level may suggest stronger market interest, potentially validating the importance of that level. - Multiple Timeframe Analysis. Traders might analyse Fibonacci extensions across various timeframes to identify consistent levels of interest. A level that appears significant on both charts could be considered more reliable. - Market Sentiment and News Events. While primarily technical, acknowledging fundamental factors such as economic news or market sentiment can help traders assess whether a Fibonacci extension level might hold or be surpassed. Limitations of Fibonacci Extensions Fibonacci extensions are valuable for projecting potential price targets, but they come with limitations that traders should consider. Understanding these can lead to more informed use within a trading strategy. - Lack of Confidence in Price Movements. While based on mathematical ratios, Fibonacci extensions don't account for unexpected market events like economic news or geopolitical developments that can significantly impact prices. - Subjectivity in Point Selection. The effectiveness of extension levels hinges on correctly identifying swing highs and lows. Different traders may choose varying reference points, leading to inconsistent levels and interpretations. - Ineffectiveness in Certain Market Conditions. In sideways or highly volatile markets, prices may not respect Fib extensions, reducing their reliability as indicators of support or resistance. - Conflicting Signals Across Timeframes. Extension levels vary between different timeframes, potentially causing confusion and conflicting signals in analysis and decision-making. - Overreliance on Technicals. Focusing solely on Fib extensions might cause traders to overlook other critical technical indicators or fundamental factors influencing the market. - Unnatural Price Movements. Widespread use of Fibonacci levels can lead to price reactions simply because many traders expect them, creating artificial support or resistance that may not hold. - Psychological Biases. Traders might experience confirmation bias, seeing what they expect at Fib levels, which can lead to misguided trading decisions. Making the Most of Fibonacci Extensions By now, you may have a decent understanding of what Fib extensions are and how to use them. But how do you make the most out of Fibonacci extensions? Here are two points you may consider to improve your trading strategy. - Look for confirmation. Instead of blindly setting orders at extension levels, you can look for price action confirmation that the price is starting to reverse at the area before taking potential profits or entering a position. You could do this by looking for breaks in the trend, as discussed in the example above. - Find confluence. Similarly, you can use other technical analysis tools like trendlines, indicators like moving averages, or even multiple Fibonacci extensions, to give you a better idea of how price will likely react at a level. Your Next Steps Now, it’s time to put your understanding to the test. Spend some time practising how to use Fibonacci extensions and try backtesting a few setups to see how you could get involved in a trade. Once you feel you have a solid strategy, open an FXOpen account to start using your skills in the live market. In the meantime, why not try exploring other Fibonacci-related concepts, like Fibonacci retracements and harmonic patterns? Good luck! FAQ How Can You Use Fibonacci Extensions? Fibonacci extensions help traders identify potential future support and resistance levels beyond the current price range. To use them, traders select three points: the start of a trend, its end, and the retracement point. They then apply the Fibonacci extension tool to project where the price may move following a retracement. How Should You Draw Fibonacci Extensions? The process starts with choosing the trend-based Fib extension tool in your charting software. Then, the next step is to select the swing low/high (start of the trend), then the swing high/low (end of the trend), and finally the retracement low/high. The tool will display extension levels indicating possible future price targets. What Is the Difference Between Fibonacci Retracements and Extensions? Fibonacci retracements identify potential support and resistance levels during a price pullback within an existing trend. Extensions, on the other hand, project levels beyond the current price range, indicating where the price might move after the retracement. Retracements focus on corrections; extensions focus on trend continuations. *Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team. Trade on TradingView with FXOpen. Consider opening an account and access over 700 markets with tight spreads from 0.0 pips and low commissions from $1.50 per lot. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
7
Technical Analysis of XAUUSD (Gold/USD) – 4H ChartTechnical Analysis of XAUUSD (Gold/USD) – 4H Chart 1. Review of Last Week’s Trend Strong Uptrend: Gold prices have been steadily rising over the past week, particularly after breaking the structure (BOS) and confirming bullish pressure. Breaking Resistance Levels: The price has moved above the equilibrium level and the PDL (Previous Day Low), approaching the premium zone. Resistance at 2800 - 2820: The red zone (Premium) indicates a strong resistance area where the price has reacted and formed a weak high. 2. Forecast for the Upcoming Week Possible Price Correction: Since the price has reached a strong resistance level (red zone), a potential pullback may occur. The PDH (Previous Day High) could act as support. Key Support Levels: PWH (Previous Week High) 2760 (aligned with the white moving average) 2740 - 2725 (aligned with the green and yellow moving averages) Two Possible Scenarios for Next Week: If the price breaks above the 2820 resistance: The uptrend may continue towards 2840 and 2850. If the price fails to break resistance: A correction towards the mentioned support zones is likely. 3. Impact of News on Gold Trump’s Policies & Geopolitical Tensions: The U.S. warning to Iran regarding Trump could increase market uncertainty, which generally benefits gold. Inflation Expectations & Fed Policies: Any signs of potential rate cuts by the Federal Reserve could further boost gold prices. Economic Data: The release of U.S. employment and inflation data in the upcoming week could significantly impact gold’s movement. Conclusion: ✅ The overall trend remains bullish, but a pullback from the 2820-2800 resistance zone is possible. ✅ Key support levels are 2760, 2740, and 2725. ✅ A breakout above 2820 could push prices towards 2850. ✅ Economic and geopolitical news will play a crucial role in price action.
SAXO:XAUUSD
by hesamdrgym
Bitcoin: Full February plan (125K shortly)Since the price of bitcoin broke out of the falling wedge formation and was successfully retested twice, its price action is incredibly bullish right now! We may anticipate higher prices over the next few days and weeks because there isn't anything particularly negative about the price action. Three powerful levels are visible on the chart, which you can utilize to guide your trading selections. The symmetrical triangle's 0.382 FIB and POC mark the initial level, which is located at 105,544 USDT. Following a breakout, this level will probably be tested soon. This implies that Bitcoin may surge above $110,000, then return to test this level before rising further. 110,342 USD is the second level price. Because it is the 0.618 FIB extension from wave 1 to wave 2, this level is likewise quite powerful. We can anticipate a liquidity sweep above this swing high and a brief downturn since it is also above the prior all-time high. At 118,109 USDT, the third level is located. We also have a 1:1 FIB extension, and as you may know, Bitcoin responds to this extension rather consistently, so this is another important level. It's among the greatest. The Elliott Wave analysis shows that the price action is likewise bullish. Impulse wave 3 has begun, and we have just completed the ABC correction with a 1:1 FIB extension. The 1:1 FIB extension may also mark the end of this wave 3, but we must watch for trendlines, chart patterns, and maybe RSI bearish divergence. For the upcoming days and weeks, this is my main strategy. The other strategy is that the ABC correction (wave 2) may become a WXYXZ triple three corrective wave if it is not finished. I'll provide you with an analysis if you leave a comment with your altcoin. For more inspiration, please hit boost and follow. If you have a skilled coach, trading is easy! Since there is no stop-loss or profit goal, this is not a trade setup. I keep my trades to myself. Thank you, and best of luck with your transactions!
Long
by NexusTradesZone
Bitcoin - Complete plan for February (125K soon)Bitcoin's price action is currently extremely bullish because the price broke out of the falling wedge pattern and 2x successfully retested it! There is really nothing bad about the price action, so we can expect higher prices in the coming days and weeks. On the chart we can see 3 strong levels that you can use for your trading decisions. The first level is at 105,544 USDT (0.382 FIB and POC of the symmetrical triangle). This level will most likely be tested in the near future after a breakout. That means Bitcoin can pump to 110k and then come back and retest this level before continuing higher. The second level is 110,342 USD. This level is also very strong because it's the 0.618 FIB extension from wave 1 to wave 2. It's also above the previous all-time high, so we can expect a liquidity sweep above this swing high and then a short-term downtrend. The third level is at 118,109 USDT. This is also a significant level because we have a 1:1 FIB extension, and you may know that Bitcoin reacts pretty reliably to this extension. It's one of the best. From the Elliott Wave perspective, the price action is also bullish. We have just finished the ABC correction with a 1:1 FIB extension, and we have started impulse wave 3. This wave 3 could end at the 1:1 FIB extension as well, but we need to wait for chart patterns, trendlines, and potentially RSI bearish divergence. This is my primary plan for the next days and weeks. The secondary plan is that the ABC correction (wave 2) has not been completed, and it can transform into a WXYXZ triple three corrective wave. Write a comment with your altcoin, and I will make an analysis for you in response. Also, please hit boost and follow for more ideas. Trading is not hard if you have a good coach! This is not a trade setup, as there is no stop-loss or profit target. I share my trades privately. Thank you, and I wish you successful trades!
Long
by Xanrox
122
ETHUSD Prepares for Expansion with Targets at $4,689 and $6,279 BITSTAMP:ETHUSD remains bullish, with the EMA ribbon confirming its upward trajectory. The price is currently holding above the critical $3,000 support, which has acted as a rebound level multiple times. Previously, a hidden bullish divergence formed on the Stochastic indicator. A hidden bullish divergence occurs when the price makes a higher low while the oscillator forms a lower low, signaling the continuation of the prevailing uptrend. This divergence is often considered a key signal for bullish continuation. The Stochastic has recently crossed above the zero level, indicating momentum with room to reach the overbought zones. The Signal Builder tool has previously provided bullish signals, aligning with the current analysis. Entry opportunities could be around $2,927, upon the breakout of the descending trendline, or following the breach of a prior swing high during this pullback phase. Using Fibonacci projections of the last impulse, targets are identified at $4,689 (100%) and $6,279 (161.8%). The stop-loss is positioned below the last swing low before the $3,000 support break, around $2,116. 👨🏻‍💻💭 Does this analysis align with your perspective on BITSTAMP:ETHUSD ? Share your thoughts below! __ The information and publications within the 3Commas TradingView account are not meant to be and do not constitute financial, investment, trading, or other types of advice or recommendations supplied or endorsed by 3Commas and any of the parties acting on behalf of 3Commas, including its employees, contractors, ambassadors, etc.
COINBASE:ETHUSDLong
by 3Commas
2