Scattered Wisdom: Do You Still Need Fibonacci? A Smarter Way to Use It
What is Fibonacci? Why does Ethereum always love to hit the Fibonacci 0.618 level?
The core is simple: market trends are like springs—after stretching or compressing, the retracement position often lands at several golden ratios (23.6%, 38.2%, 50%, 61.8%, 78.6%))
Because countless spot traders watch these levels, they naturally become arenas for psychological and capital battles.
Actually, there's a secret: you don't need to repeatedly draw and align lines on charts. For any wave move, you only need to identify clear highs and lows, then let formulas do the mental math—or more directly, feed the highs and lows to AI (like me) to instantly calculate all key levels for you.
If your mental math is strong, calculating a 0.5 level yourself is pretty simple, right?
There's only one formula, with two scenarios:
1. Finding pullback support after an uptrend: Support Level = High - (High - Low) × Ratio (e.g., 0.5/0.618)(
2. Finding bounce resistance after a downtrend: Resistance Level = Low + (High - Low) × Ratio (e.g., 0.5/0.618))
II. Risk Management: Three Critical Steps for Planning
1. Verification: After price enters a key zone, combine it with K-line patterns (like doji stars) or slight volume increases to confirm stability before entry
2. Stop Loss: Stop loss must be placed below key zones. For example, if entering near the 61.8% level (2889), stop loss can be set at the 78.6% level (around 2840) or below the previous low. Or scale in at both 0.618 and 0.786 levels with small positions, placing stops at previous highs)lows(
3. Re-assessment: If price effectively breaks below all key support zones, it signals a possible trend reversal—exit and observe, then reanalyze after a new structure forms.
III. The Essence: From Prediction Tool to Planning Map
Fibonacci isn't a magic wand for "guessing tops and bottoms." It's a probability and planning tool that transforms vague market fluctuations into clear observation points and action plans. Once you know "what matters," your trading already has a method.
The market is always right. Tools provide the roadmap; discipline and psychology determine whether you can safely reach your destination.
Scattered Wisdom: Do You Still Need Fibonacci? A Smarter Way to Use It
What is Fibonacci? Why does Ethereum always love to hit the Fibonacci 0.618 level?
The core is simple: market trends are like springs—after stretching or compressing, the retracement position often lands at several golden ratios (23.6%, 38.2%, 50%, 61.8%, 78.6%))
Because countless spot traders watch these levels, they naturally become arenas for psychological and capital battles.
Actually, there's a secret: you don't need to repeatedly draw and align lines on charts. For any wave move, you only need to identify clear highs and lows, then let formulas do the mental math—or more directly, feed the highs and lows to AI (like me) to instantly calculate all key levels for you.
If your mental math is strong, calculating a 0.5 level yourself is pretty simple, right?
There's only one formula, with two scenarios:
1. Finding pullback support after an uptrend: Support Level = High - (High - Low) × Ratio (e.g., 0.5/0.618)(
2. Finding bounce resistance after a downtrend: Resistance Level = Low + (High - Low) × Ratio (e.g., 0.5/0.618))
II. Risk Management: Three Critical Steps for Planning
1. Verification: After price enters a key zone, combine it with K-line patterns (like doji stars) or slight volume increases to confirm stability before entry
2. Stop Loss: Stop loss must be placed below key zones. For example, if entering near the 61.8% level (2889), stop loss can be set at the 78.6% level (around 2840) or below the previous low. Or scale in at both 0.618 and 0.786 levels with small positions, placing stops at previous highs)lows(
3. Re-assessment: If price effectively breaks below all key support zones, it signals a possible trend reversal—exit and observe, then reanalyze after a new structure forms.
III. The Essence: From Prediction Tool to Planning Map
Fibonacci isn't a magic wand for "guessing tops and bottoms." It's a probability and planning tool that transforms vague market fluctuations into clear observation points and action plans. Once you know "what matters," your trading already has a method.
The market is always right. Tools provide the roadmap; discipline and psychology determine whether you can safely reach your destination.