Close Menu
CryptoHoppers.comCryptoHoppers.com
    What's Hot

    Sony Group acquires Amber Japan, officially steps into crypto exchange arena

    July 1, 2024

    YieldMax files for Ether Option Strategy ETF ahead of Ether ETF launch

    June 22, 2024

    Metaplanet stock soars 15% after firm scoops another 106 BTC

    October 15, 2024
    Facebook X (Twitter) Instagram
    • Privacy Policy
    • Get In Touch
    Facebook X (Twitter) Instagram
    CryptoHoppers.comCryptoHoppers.com
    • News

      GENIUS Act Passes House with 308 Votes, Could Redefine Stablecoins and Supercharge U.S. Crypto

      July 18, 2025

      Bitcoin May Freeze Satoshi’s Wallet Over Quantum Threat

      July 16, 2025

      Bitcoin under pressure as Satoshi-era whale sells: Will BTC drop to $108K?

      July 15, 2025

      BlackRock’s Bitcoin ETF Blows Past $80,000,000,000, Faster Than Any Other Exchange-Traded Fund in History: Bloomberg Analyst

      July 14, 2025

      Will Pi crash or rally in 2025?

      July 11, 2025
    • Technology

      Windtree Becomes First NASDAQ Firm to Add BNB to Its Balance Sheet

      July 18, 2025

      What is AI16Z – AMBCrypto

      July 17, 2025

      Bonk gains 15% to lead memecoins as altcoins eye rally

      July 16, 2025

      Comment on Trump Firing Powell Would Set ‘Very Bad Precedent,’ Warns Pompliano by Powell's Replacement? Fed Chair Succession Process Underway

      July 15, 2025

      Hungary Bans Unlicensed Crypto Platforms: Revolut and Bitstamp Suspend Services

      July 14, 2025
    • Learn/Guide

      $10.7 trillion Charles Schwab to launch spot Bitcoin, Ether trading, eyes stablecoin market entry

      July 18, 2025

      Russia’s largest bank Sberbank to roll out Bitcoin, crypto custody services to catch up with global banks

      July 17, 2025

      Trump Media files trademarks for Truth Social AI and AI Search

      July 16, 2025

      DOJ and CFTC drop investigations into Polymarket

      July 15, 2025

      FUNToken Isn’t Just Trending – It’s Consolidating Power in Telegram, One User at a Time

      July 14, 2025
    • NFTs

      1mouth Analog: miirror’s Raw Leap from Digital to Handmade Chaos | NFT CULTURE | NFT News | Web3 Culture

      May 9, 2025

      NFTCulture Expands Into TCGs with Cardcore.xyz: Where Digital Collectibles Meet Competitive Play | NFT CULTURE | NFT News | Web3 Culture

      May 8, 2025

      From Moonshots to Broken Links: The Rise and Fall of CloneX | NFT CULTURE | NFT News | Web3 Culture

      April 24, 2025

      Pacific Spirit: Vinyl Meets Code in a Groundbreaking Generative Drop on Art Blocks | NFT CULTURE | NFT News | Web3 Culture

      April 16, 2025

      Daizen: Elevating the NFT Multiverse on Apechain Blockchain | NFT CULTURE | NFT News | Web3 Culture

      December 5, 2024
    • Regulation

      SEC Drops Binance Lawsuit: How Regulatory Clarity Could Spark a BNB Price Rally

      May 30, 2025

      Kentucky Governor Signs Off On ‘Bitcoin Rights’ Bill, Strengthening Crypto Protections

      March 31, 2025

      Utah Moves Closer To Bitcoin Reserve As Bill Advances To Senate Standing Committee

      February 23, 2025

      Bitcoin ETFs In Focus As Kansas Senator Proposes Up To 10% Pension Fund Allocation

      January 26, 2025

      MicroStrategy May Face Tax Issues Over $19 Billion Unrealized Bitcoin Gains: Report

      January 25, 2025
    • Business

      Sri Lanka’s E-commerce Platform Kapruka to Introduce Crypto Payments

      November 17, 2024

      Leading Eastern European Exchange Exmo Sells Business in Russia, Belarus

      November 16, 2024

      Bank of Russia to Launch Digital Ruble Payment Infrastructure by July 2025

      November 15, 2024

      Bitcoin Mining Company Mara Holdings Now Holds 26,747 Bitcoin: Q3 Earnings Report Reveals

      November 14, 2024

      Brazil Prepares to Let Tradfi Institutions Embrace Crypto

      November 13, 2024
    • Live Pricing
    CryptoHoppers.comCryptoHoppers.com
    Home » Fibonacci Retracement Mastery for Crypto Trading Beginners
    Learn/Guide

    Fibonacci Retracement Mastery for Crypto Trading Beginners

    October 20, 20234 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    vc spectra
    Share
    Facebook Twitter LinkedIn Pinterest Email


    Nature can teach us many things. Did you know that there is a crypto trading indicator that operates based on a mysterious calculation inspired by nature? Yes, we are talking about Fibonacci Retracement Levels. This tool is considered a remarkable asset in the world of crypto trading. While some have questioned the reasoning behind using this calculation to make trading decisions, the tool remains popular among traders due to the impressive results it offers. Definitely, it is worth taking a few minutes to learn about this exceptional tool. Let’s start!

    1. Fibonacci Retracement Levels: What You Should Know 

    Fibonacci Retracement is an extremely popular crypto trading indicator. It is based on the Fibonacci number sequence introduced by Leonardo Pisano, popularly known as Fibonacci. To gain a better understanding of this tool, it is essential to grasp the concept of the Fibonacci Sequence and Fibonacci Ratios.

    1.1. What’s Fibonacci Sequence 

    The following is the Fibonacci sequence:

    0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89 etc.

    In this sequence, you can observe that each number is the sum of the two preceding ones. Interestingly, this sequence is prevalent in nature, appearing in various forms such as spiral shapes in seashells, flower petals and star constellations, and more. It is thought that Fibonacci developed this sequence while observing nature. Some believe that this sequence can even shed light on human behaviour. Actually, this is the logic that the fans of this tool use to justify the relevance of the indicator in the crypto trading sector. What the indicator does is bring the potential of this sequence into the trading world to help understand price fluctuations.

    1.2. Fibonacci Ratios: How To Calculate Fibonacci Retracement Levels 

    Fibonacci ratios play a key role in understanding Fibonacci Retracement Levels. These ratios help us identify potential support and resistance levels in a price trend. 

    Here is how you can calculate them:

    • 68.1% Ratio:- To find this ratio, divide a Fibonacci number by the one that follows it. 

    Eg. 21/34 = 0.681 

    • 38.2% Ratio:- To calculate this ratio, divide a Fibonacci number by the one located two places to the right.

    Eg. 21/55 = 0.382

    • 23.6% Ratio:- This ratio is found by dividing a Fibonacci number by the one situated three places to the right.

    Eg. 21/89 = 0.236

    2. Steps to Launch Fibonacci Retracement Levels Indicator in TradingView 

    Launching Fibonacci Retracement Levels in a chart is a simple five-step process.

    • Step 1: Sign In to TradingView

    Log in to your TradingView account or create one if needed.

    Select a random chart to apply the indicator to.

    • Step 3: Select Fibonacci Retracement Levels

    Click on the ‘Fib Retracement’ icon in the left corner bar.

    • Step 4: Check Ration Settings 

    Ensure the levels in the settings match the Fibonacci ratios you need.

    • Step 5: Find Market Momentum

    Identify two extremes in the market to place the indicator for analysis. 

    3. How to Use Fibonacci Retracement Levels to Read A Chart 

    The fundamental concept, over which Fibonacci Retracement Levels stands, is when there is a strong momentum in the crypto market in one direction, it often pauses briefly before continuing. 

    Traders select swing high and swing low points on a chart. Then, they apply the ratios of 68.1%, 38.2%, and 23.6%, which create horizontal lines between these points. Additionally, traders often add two more levels, 50% and 76.4%, though not part of the Fibonacci sequence. 

    Basically, these five lines offer potential areas where cryptocurrency prices may reverse within a trend or encounter support and resistance. 

    3.1. What Is Golden Ratio in Fibonacci Retracement Levels 

    The ratio of 61.8%, in Fibonacci Retracement Levels, is considered as the Golden Ratio. It stands out as it is considered a strong indicator of potential price reversals. Its special significance lies in its frequent alignment with market turning points, making it a vital level for traders to monitor in predicting changes in asset prices. 

    4. Four Points Why One Should Not Rely on Fibonacci Retracement Levels 

    It is important to keep one thing in mind that no crypto trading indicator can promise one hundred per cent accuracy. The Fibonacci Retracement Levels indicator too has some serious limitations.

    • Subjectivity:- The tool depends on chosen points, leading to interpretation variations. 
    • Market Volatility:- Levels may not always work in volatile markets.
    • Multiple Indicators:- Sole reliance on Fibonacci overlooks other essential market indicators.
    • Historical Data:- Past performance is no guarantee of future success; market behaviour evolves.

    Endnote 

    Fibonacci Retracement Levels, rooted in the Fibonacci sequence, are a widely-used tool in crypto trading. These levels help traders identify potential price reversal points by applying key ratios, offering insight into market momentum. However, it is essential to remember their limitations, such as subjectivity and vulnerability to market volatility. While not a guarantee of success, understanding and using Fibonacci Retracement Levels can be a valuable addition to a trader’s toolkit, aiding in the analysis of cryptocurrency trends. 





    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    $10.7 trillion Charles Schwab to launch spot Bitcoin, Ether trading, eyes stablecoin market entry

    July 18, 2025

    Russia’s largest bank Sberbank to roll out Bitcoin, crypto custody services to catch up with global banks

    July 17, 2025

    Trump Media files trademarks for Truth Social AI and AI Search

    July 16, 2025

    DOJ and CFTC drop investigations into Polymarket

    July 15, 2025
    Top Posts

    Base Chain transactions surge as DEX volume nears $400b

    May 18, 2025

    BSV up +13.58%, BTC -1.45%, Bitcoin SV is The Coin of The Day – Daily Market Update for Oct 03, 2023 | CoinCodex

    October 3, 2023

    Transforming Digital Finance with Innovation

    June 10, 2023

    Welcome to CryptoHoppers.com! Stay informed with the latest updates, trends, and insights from the dynamic world of cryptocurrencies. From Bitcoin to altcoins, blockchain technology to decentralized finance (DeFi), we cover it all. Discover expert analysis, market trends, regulatory developments, and exciting innovations shaping the crypto industry.

    Top Insights

    GENIUS Act Passes House with 308 Votes, Could Redefine Stablecoins and Supercharge U.S. Crypto

    July 18, 2025

    Bitcoin May Freeze Satoshi’s Wallet Over Quantum Threat

    July 16, 2025

    Bitcoin under pressure as Satoshi-era whale sells: Will BTC drop to $108K?

    July 15, 2025
    Advertisement
    Demo
    CryptoHoppers.com
    Facebook X (Twitter) Instagram
    • News
    • Technology
    • Learn/Guide
    • Regulation
    • NFTs
    • Business
    • Live Pricing
    © 2025. Designed by CryptoHoppers.com.

    Type above and press Enter to search. Press Esc to cancel.