When it comes to technical analysis of any cryptocurrency asset, Fibonacci retracement is one of the most popular tools that is used by traders and technical analysts. The Fibonacci retracement is basically a technical analysis tool that consists of a sequence of Fibonacci numbers that are taken by doing the addition of the previous two numbers which are 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, and so on… The Fibonacci retracement tool places horizontal lines on the chart which shows the possible support zones and resistance zones. It is used for drawing support lines, determining levels of resistance, and levels for stoploss and take profit. A Fibonacci retracement is simply plotted vertically on a particular cryptocurrency chart by starting from the lowest low point to the highest point to chart for a bullish move, and starting from the highest high point to the lowest low point to chart for a bearish move.
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Fibonacci Retracements - Bullish and Bearish Move
To make use of the Fibonacci Retracement tool to chart a bullish move and bearish move, on tradingview, select the Fibonacci Retracements from the tools section.
BNB/USDT Chart
For a bullish move, draw the Fibonacci Retracements from the lowest low price point the highest high price point you want analyze.
BNB/USDT Chart
For a bearish move, , draw the Fibonacci Retracements from the highest high price point the lowest low price point you want analyze.
BNB/USDT Chart
Moving averages have become one of the most important tools when it comes to technical analysis of any cryptocurrency asset over a period of time. They are very beneficial when it comes to analyzing price actions over a fixed period of time. Like the name, a moving average basically represents the average closing price of any selected cryptocurrency asset over a period of time. Both the simple moving average and the exponential moving average are very useful and common moving average indicators that can help traders determine the trend direction and also support and resistance zones. When used correctly, moving average can signal entry and exit points when it comes to trading and making more profits.