Conversely, a swing low is the low candlestick stick of a trend with a higher low on each side.<\/li>\n<\/ul>\nFibonacci retracement levels\u2014stemming from the Fibonacci sequence\u2014are horizontal lines that indicate where support and resistance are likely to occur. When using Fibonacci retracement levels to identify support, we are attempting to predict where the price may retrace to after moving up. In other words, we\u2019re identifying where the price might land after it has reached a peak and started declining. In technical analysis, however, it is most commonly encountered in the Fibonacci retracement and Fibonacci extension tools. The process to find potential resistance levels is largely the same as before, except this time you will be connecting the swing high to swing low.<\/p>\n
The Fibonacci Sequence<\/h2>\n
In the chart below, we placed our Fibonacci bottom level at a major support line on $3,600 for ETH\/USD. Finally, we get to the meat of our article, where we teach you about Fibonacci trading strategy. Below, we go through various Fibonacci retracement trading strategies that LTC you can use as your Fibonacci day trading strategies for making reliable market entries and exits. Keep in mind that there\u2019s no single best Fibonacci trading strategy, as each one can be applied in different circumstances. In addition to tracking price, volume and market capitalisation, CoinGecko tracks community growth, open-source code development, major events and on-chain metrics. Do note that the price could continue to fall below these levels, and uptrends could set in before a complete reversal.<\/p>\n
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