Trading in crypto becomes easier when you follow a clear method.
One of the best and most trusted methods is the Fibonacci Trading Method.
This method helps you know where to Buy, where to place Stop-Loss, and where to take Profit.
In this article, we will take any coin on Binance (4-Hour Timeframe) and follow the steps.
What is Fibonacci in Trading?
Think of the Fibonacci tool as a ladder. It shows you levels where price can bounce or reverse.
These levels are very important:
* 0.0 (Bottom)
* 0.5
* 0.618
* 1.0 (Top)
The most powerful one is 0.618, also called the Golden Level.
📈 When the Coin Is in Uptrend (Price Going Up)
✔ Step 1:
Find the previous bottom (low point) and previous top (high point).
✔ Step 2:
Apply the Fibonacci tool from bottom → top.
✔ Step 3: Buy Entry
If the price falls back and touches the 0.5 or 0.618 level, this is a strong BUY area.
✔ Step 4: Stop-Loss
Place your stop-loss just below the 0 level (previous low).
✔ Step 5: Profit Targets
Target 1: Back to Top (1.0 level)
Target 2: Above top (1.272 or 1.618 Fibonacci extension)
⭐ Success Rate:
99.99% works well when you follow this method with discipline and patience.
📉 When the Coin Is in Downtrend (Price Going Down)
✔ Step 1:
Find the previous top (high point) and previous bottom (low point).
✔ Step 2:
Apply Fibonacci from top → bottom.
✔ Step 3: Sell Entry
If price moves up and touches 0.5 or 0.618, this becomes a SELL area.
✔ Step 4: Stop-Loss
Put stop-loss above the previous top.
✔ Step 5: Profit Targets
Target 1: Back to bottom (0 level)
Target 2: Lower extension (1.272 or 1.618)
Why Fibonacci Works?
Because most traders and big investors watch these levels.
So price often reacts exactly at these points.
Note:
Fibonacci trading on a 4-Hour chart is a long trade.
This requires:
* Patience
* Discipline
* No emotional decisions
If you follow the rules, this method gives consistent results.
Examples (In Chart Images):
✔ Uptrend (BUY):
Draw Fibonacci from bottom 0.149 → top 0.254.
Price falls to 0.5 (0.201) or 0.618 (0.214) → Buy Zone.
Stop-loss below 0.149.
Targets: 0.254, then higher.
✔ Downtrend (SELL):
Draw Fibonacci from top 0.00007557 → bottom 0.00002500.
Price rises to 0.5 or 0.618 → Sell Zone.
Stop-loss above the top.
Targets: bottom and lower levels.
Disclaimer:
This article is for educational purposes only. Crypto trading is risky. Always do your own research (DYOR). Never invest money you cannot afford to lose. Past success does not guarantee future profits.
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