What are the Fibonacci extension numbers used in cryptocurrency trading?

1 answers

• Raunaq AroraOct 17, 2021 · 4 years ago
  In cryptocurrency trading, Fibonacci extension numbers play a crucial role in identifying potential price targets and areas of support or resistance. These numbers, such as 0.618, 1.618, and 2.618, are derived from the Fibonacci sequence and are believed to represent key levels where price trends may reverse or extend. Traders often use these levels to set profit targets or determine when to exit a trade. For example, if a cryptocurrency's price retraces from a recent high to the 0.618 Fibonacci level, traders may consider selling or taking profits at the 1.618 or 2.618 levels. It's important to note that Fibonacci extension numbers are not guaranteed to predict price movements accurately, but they can provide valuable insights when used in conjunction with other technical analysis tools.
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