What are the most commonly used fib retracement levels in the cryptocurrency market?

1 answers

• Mar 06, 2022 · 3 years ago
  Fib retracement levels are commonly used by cryptocurrency traders to gauge potential price reversals. These levels are derived from the Fibonacci sequence and are believed to represent areas of support and resistance. Traders use these levels to identify potential entry and exit points for their trades. For example, if a cryptocurrency is in an uptrend and retraces to a fib retracement level of 0.618, traders may see this as a potential buying opportunity. Conversely, if a cryptocurrency is in a downtrend and rallies to a fib retracement level of 0.382, traders may consider selling at this level. It's important to note that fib retracement levels are not always accurate and should be used in conjunction with other technical analysis tools to make informed trading decisions.
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