Using Fibonacci Lines in Trading: My Personal Experience

I have been using analysis techniques in the crypto market for years and I can say for sure: Fibonacci lines are magical when used correctly. No, it's not an exact science as many want to make you believe, but it works very well if you understand the basics.

I discovered that these numbers, originating from the 13th century by the mathematician Leonardo Fibonacci, have a frightening power in price charts. And it’s not a coincidence! These same mathematical patterns appear in everything - from shells to galaxies. Why not in financial markets?

The main levels I use are 23.6%, 38.2%, 50% ( which is not technically a Fibonacci number! ), 61.8%, and 78.6%. When Bitcoin started to drop after hitting 70,000, guess where it found support? Exactly at the Fibonacci levels! A lot of people lost money by ignoring these signals.

What annoys me is seeing how these big platforms sell this as a perfect science. It isn't! It mainly works because EVERYONE is looking at the same levels. It's a self-fulfilling prophecy.

When I draw Fibonacci on uptrends, I can identify where there will likely be support when the price corrects. I have saved my skin several times by placing buy orders at these levels while others panicked.

The best use? Combine with other indicators! Alone, Fibonacci lines are just another tool. But when I see the RSI oversold ALONG with an important Fibonacci level, that's it! It's a strong signal to enter.

Fibonacci extensions are also amazing for determining price targets. I mainly use 161.8% and 261.8% to define where to take profit.

Although there is no proven scientific basis, Fibonacci lines work because a lot of traders look at them. It's pure market psychology! Don't be naive thinking that these big brokers don't manipulate the market precisely at these levels.

Use Fibonacci, but use it wisely. And remember: no indicator is infallible in this volatile cryptocurrency market.