How do you set up your Fibonacci retracement and extension levels?

» Chart Analysis
  • Identify the most recent significant swing highs and lows for your chosen cryptocurrency pair to anchor the Fibonacci retracement tool.
  • Drag the Fibonacci retracement tool from the swing low to the swing high for uptrends, or from the swing high to the swing low for downtrends.
  • Set your Fibonacci extension levels by adding them manually in the settings of the retracement tool, typically using ratios like 161.8%, 261.8%, and 423.6%.

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How do you set up your Fibonacci retracement and extension levels?

Just wondering how you all set up your Fibonacci retracement and extension levels? Been experimenting a bit with it but seems like everyone has their own style and I’m interested in your thought process. How do you decide which highs and lows to use? Do you use it along with other indicators? Share your experiences and tips, really keen to hear your thoughts about this.

That's a really solid approach! Never thought of it that way. Definitely gonna try it out. Any other tricks you guys have up your sleeves?

Well, aside from my usual sacrifice to the trading gods, I sometimes throw in a moving average or two — because, you know, I like my charts to look like a bowl of spaghetti. Do keep in mind, my advice might buy you a cup of coffee or a spaceship, it’s a 50/50 really.

It's interesting to note how the context of the market can really shift the effectiveness of Fibonacci levels. For instance, in a strongly trending market, I've found that retracements to the 38.2% and 50% levels are quite common, while during more uncertain or sideways markets, the 61.8% level might be more relevant. Aligning these observations with volatility indicators like Bollinger Bands or ATR can provide a more nuanced insight. What’s your strategy in different market conditions? Do you adjust your Fibonacci settings or stick to a standard approach?

Honestly, I've tried aligning Fib levels with volatility indicators and it just hasn't worked for me. Seems like more noise than clear signals. Do you really find that combining them adds clarity, or is it just complicating the decision-making process?

Honestly, every time I adjust my Fibonacci, it feels like I'm trying to predict the next plot twist in a soap opera. Does anyone else feel like they need a crystal ball for this?

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