fibonachi

#fibonachi #KouachiSignals #TrumpVsMusk $BTC $ETH $BNB
💰🤔Why is calculating Fibonacci levels so important in trading?🚀💵
What is Fibonacci?
Fibonacci is a mathematical sequence discovered by the Italian mathematician Leonardo Fibonacci in the 13th century. This sequence is used in technical analysis to identify potential support and resistance levels in financial markets.

The chart above represents the Fibonacci levels for Bitcoin, as it was drawn from the lowest bottom the price reached to the highest peak on the hourly frame. Here, it is clear that Bitcoin is touching a strong resistance area on the hourly frame.
Key Fibonacci Levels
Fibonacci levels are based on specific ratios used to identify potential reversal points in price movement. The most important of these levels are:
23.6%
38.2%
50.0%
61.8%
78.6%
These levels are used to identify support and resistance areas where the price may stall or reverse.
How to Use Fibonacci in Trading
To use Fibonacci levels effectively:
Determine the trend: Determine the overall market trend (bullish or bearish).
Draw levels: In an uptrend, draw the Fibonacci tool from the bottom to the top; in a downtrend, from the top to the bottom.
Define entry and exit points: Use the levels to determine entry points (at support) and exit points (at resistance).
Combine with other tools: To increase accuracy, combine Fibonacci levels with other technical indicators such as the RSI and MACD.
Example: Assume that the price of BTC rises from $20,000 to $30,000. Using the Fibonacci tool:
38.2% level: at $26,180
50.0% level: at $25,000
61.8% level: at $23,820
If the price begins to decline, it may stall at these levels before resuming the uptrend.
Professional Tips
Use Different Timeframes: Check Fibonacci levels on multiple timeframes to confirm signals.
Pay Attention to Japanese Candlesticks: Look for candlestick patterns at Fibonacci levels to confirm potential reversals.
Risk Management: Set stop-loss points below/above Fibonacci levels to reduce risk.
💵💥The Importance of Fibonacci in Trading and Accurate Signals
1- Identifying support and resistance levels with high accuracy
2- Predicting future price movements with up to 80% accuracy
3- Accurately identifying entry and exit points. This, of course, enhances confidence in decision-making by utilizing various other indicators, such as pivot points, MACD, ARSI, volume, and Japanese candlestick price patterns (we will discuss these later in our explanations in future posts).
4- Determining an accurate stop-loss point to minimize losses and manage risk.

$BTC It all started in 1202, when Leonardo of Pisa, better known as Fibonacci, presented the world with an interesting sequence of numbers: 0, 1, 1, 2, 3, 5, 8, 13… Each number is the sum of the two previous ones. that. Simple, right? However, this sequence revealed one of the greatest mysteries of nature.
The Fibonacci sequence appears everywhere: the spiral of a seashell, the petals of a sunflower, the branches of trees—even the structure of galaxies. These patterns correspond to the golden ratio (1.618), a universal blueprint of balance and proportion.

The Fibonacci technique is a method commonly used in technical analysis within financial markets, based on the Fibonacci number sequence. This sequence, developed by the Italian mathematician Leonardo Fibonacci, is a series of numbers where each number is the sum of the two preceding ones: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, etc. The ratios between these numbers reveal certain mathematical relationships, such as the "golden ratio" (approximately 1.618), which frequently appears in nature and human-made systems.
Fibonacci Technique in Financial Analysis
In financial markets, the Fibonacci technique is primarily used to identify potential support and resistance levels for price movements. The most commonly used tools include:
Fibonacci Retracement:
Specific Fibonacci ratios (23.6%, 38.2%, 50%, 61.8%, 78.6%) are calculated between the start and end points of a price trend (upward or downward).

These levels indicate potential areas where the price might pull back or correct.

For example, if a stock rises from $100 to $150, retracement levels are calculated based on these ratios (e.g., the 61.8% retracement level might be around $123).
Fibonacci Extensions:
Used to determine potential target levels if the trend continues.

Common extension levels include 100%, 161.8%, 261.8%, etc.
Fibonacci Arcs, Fans, and Time Zones:
Arcs: Show potential reversal points based on time and distance.

Fans: Draw trendlines at angles based on Fibonacci ratios.

Time Zones: Predict points in time where price movements might reverse.
How It’s Applied
On a charting platform (e.g., TradingView), you select the Fibonacci tool.

You mark the start and end points of a trend (e.g., the lowest and highest prices).

The tool automatically plots the Fibonacci levels, which can guide trading decisions.
Purpose
Support and Resistance: Identify levels where the price might pause or reverse.

Target Setting: Determine potential profit-taking points if the trend continues. #FIBO

Risk Management: Set stop-loss levels.
Although this technique is purely mathematical, its effectiveness in markets often stems from traders and investors acting on these levels, creating a self-fulfilling prophecy. #fibonachi #Fibonacci🚀💰📈

The Fibonacci sequence, a series of numbers where each number is the sum of the two preceding ones (0, 1, 1, 2, 3, 5, 8, 13...), has fascinated mathematicians and artists for centuries. In the trading world, it has been adapted to identify potential support and resistance levels on price charts.
How is Fibonacci used in trading?
Traders use Fibonacci levels (38.2%, 50%, 61.8%, etc.) to draw horizontal lines on a chart. These levels are calculated based on the distance between two key points in a price movement, such as a high and a low.