FIBONACCI: THE MOST IMPORTANT LEVEL WHERE THE PRICE USUALLY BOUNCES ššµš„
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
⢠Aligns with supply or demand zones
⢠Usually aligns with supports and resistances
⢠Related to the golden ratio
⢠Institutional traders also take it as a reference
3. Signals of a valid bounce at 61.8%
⢠Clear rejection candles
⢠Increase in volume
⢠Staying within the trend structure
⢠Confirmation in higher timeframes
4. Common mistakes when using Fibonacci
⢠Drawing it incorrectly
⢠Entering without waiting for confirmation
⢠Using it without combining with structure and liquidity
⢠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