Too many people around me have lost their capital due to Fibonacci and immediately question the effectiveness of the indicator itself. In fact, the problem isn't with the tool, but with how you use it. Today, I’ll lay out my three-year-hourly analysis framework, which is based on a verification system using Fibonacci 8-13-21 cycles. The main purpose of this logic is to filter out noise and help you distinguish between true breakouts and false signals.

Let me clarify the key point first: Fibonacci time cycles are not meant for "counting numbers," but rather for testing whether the signals themselves have genuine support. Most people start counting K-lines from a high point, but they fail to consider how to determine whether this node is a real breakout or just a trap set by the main force. The difference is significant.

Taking the recent ZEC market as an example, I sensed the big 21-hour bullish candle as early as 13 hours in, relying on this triple verification system.

**First Level: The high point must be truly valid**
This is where most people fall into traps. They randomly pick a small high point and start counting, but the resulting cycle is naturally distorted. My standard is relatively strict: this high point must block at least 3 hourly K-lines, and there should be obvious volume expansion—proof that someone is actively smashing the shorts. For example, in this ZEC move, there were 5 K-lines before and after the high point that couldn’t touch it, confirming it as a real high point. Starting to count cycles from the second K-line after confirmation can eliminate 80% of false signals.

**Second Level: 8-hour and 13-hour cycles must show signs of accumulation**
I never rely solely on the 21-hour cycle. Instead, I observe whether there are signs of buildup in the 8-hour and 13-hour cycles—such as slight consolidations or shrinking volume, indicating low-key preparation. The coordination of these two cycles is like paving the way for the big 21-hour move.

**Third Level: Confirmation of the pullback position**
When the market truly pulls back to a support level, if the rebound strength meets the expectations set by the previous two verification layers, then it’s basically a true breakout. Although this logic sounds cumbersome, in practice it can help you avoid most false signals.