5 Strategies to Improve Spot Trading with Retracements

1. ๐Ÿ” Use Fibonacci Retracement Levels

Identify key levels like 0.382, 0.5, and 0.618 to find strong buying zones after a pump. These areas often act as support during pullbacks.

2. ๐Ÿ›‘ Set Alerts, Not Emotions

Instead of watching charts all day, set price alerts at key zones. This helps you stay patient and only act when your conditions are met.

3. ๐Ÿ“Š Follow RSI and Volume

When the Relative Strength Index (RSI) is oversold and volume spikes, it can signal the end of a retracement. Combine this with other indicators for confirmation.

4. ๐Ÿง  Apply Risk Management

Only enter with small position sizes during uncertain conditions. Use stop-losses and never invest more than you can afford to lose. This protects your capital for better trades.

5. โณ Wait for Confirmation Candles

Avoid entering during red candles or weak reversal signs. Wait for bullish engulfing, hammer, or confirmation patterns before buying in a retrace.