FIBONACCI: THE MOST IMPORTANT LEVEL WHERE THE PRICE USUALLY BOUNCES ๐๐ต๐ฅ
The Fibonacci retracement is a key tool for identifying potential price bounce points.
Although many levels are useful, there is one that stands out for its effectiveness across all timeframes.
1. The most respected level: 61.8%
The 61.8% level is considered the strongest level of the Fibonacci retracement.
In bullish or bearish trends, this level often acts as a zone where the price reacts strongly.
2. Why it works so well
โข Aligns with supply or demand zones
โข Usually aligns with supports and resistances
โข Related to the golden ratio
โข Institutional traders also take it as a reference
3. Signals of a valid bounce at 61.8%
โข Clear rejection candles
โข Increase in volume
โข Staying within the trend structure
โข Confirmation in higher timeframes
4. Common mistakes when using Fibonacci
โข Drawing it incorrectly
โข Entering without waiting for confirmation
โข Using it without combining with structure and liquidity
โข Trading just because it hit a level
Conclusion:
The 61.8% level is not magic.
It is a zone where structure, liquidity, and natural market behavior coincide.
When used correctly, it is one of the best points to look for entries.
#Fibonacci #priceaction #TradingCripto $BTC