How does the use of Fibonacci retracement help identify potential support and resistance levels in digital currencies?

1 answers

• May 01, 2022 · 3 years ago
  At BYDFi, we believe that Fibonacci retracement is a valuable tool for identifying potential support and resistance levels in digital currencies. It's a technique that has been used by traders for decades and has stood the test of time. The Fibonacci ratios provide objective levels that can act as areas of interest for traders. When the price approaches these levels, it's like a magnet that attracts buyers or sellers, leading to potential reversals or bounces. However, it's important to note that Fibonacci retracement is just one tool in a trader's toolbox. It should be used in conjunction with other technical analysis tools and indicators to make more informed trading decisions.
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