BitcoinEducation
Get the Highs and Lows by Trend-Based Fib Time!
Updated
Hey everyone,
I have come back with a new study on Bitcoin. This is all based on my observations, do read the whole idea!
The chart must be looking very messy but let me explain the whole thing to you.
I have used two tools here:
Trend-Based Fib Time
This tool is very helpful in predicting the future highs and lows of the market! We can cover the ‘how to draw it’ part in another idea. Let me show you how it is used.
Fib Time Tool predicts the trend reversal points at certain time intervals. These time intervals are derived on the basis of the Fibonacci Numbers. Check out these intervals marked by the vertical lines; each vertical line triggers some big move in the market.
In the chart, the zic-zac arrow line indicates the move of Bitcoin.
My observations:
The pink zones, or the 382 to 618 zones (1.382 to 1.618 or 2.382 to 2.618 or 3.382 to 3.618) are the zones of big impulse moves.
The blue zones, or the 618 to 1 zones are the zones where the price consolidates.
The remaining, i.e., the 1 to 1.382 or 2 to 2.382 zones are the zones of impulse moves too, but the moves are not as strong as the moves in the pink zones.
Fibonacci Channel:
For making a Fibonacci Channel here, we will do the exact opposite of the instructions given by TradingView for it. I have tried this on Gold too, where it works very perfectly! Check out the XAUUSD idea through the link at the end of this idea.
TradingView states that, in order to make a Fibonacci Channel in an uptrend, we need to start with the 2 lows and then put the third point on the high coming between these two lows. This idea works perfectly if the trend continues upwards. But, what to do in the situation of reversals?
So, in order to trade the trend reversals, we will draw it in the opposite way. We are not starting with the lows; we will first take the 2 highs and then the low between them. Check out the below chart image for reference. I have marked it with A, B and C.
By this, you will get the levels, on the basis of which, you can set the targets. Always confirm the next move by a pullback. You can trade with this tool by taking the help of the Fib Time.
What is the current scenario?
I have marked the reversal points by pink arrows and consolidation zones with pink boxes and black arrows. Here, we are currently entering into the consolidation phase, which might end by Feb 15. Check out the Pink Dashed arrow for reference. We might see another major and last dip around 6th March!
Comment down your doubts and trade safe!
I have come back with a new study on Bitcoin. This is all based on my observations, do read the whole idea!
The chart must be looking very messy but let me explain the whole thing to you.
I have used two tools here:
- Trend-Based Fib Time
- Fibonacci Channel
Trend-Based Fib Time
This tool is very helpful in predicting the future highs and lows of the market! We can cover the ‘how to draw it’ part in another idea. Let me show you how it is used.
Fib Time Tool predicts the trend reversal points at certain time intervals. These time intervals are derived on the basis of the Fibonacci Numbers. Check out these intervals marked by the vertical lines; each vertical line triggers some big move in the market.
In the chart, the zic-zac arrow line indicates the move of Bitcoin.
My observations:
The pink zones, or the 382 to 618 zones (1.382 to 1.618 or 2.382 to 2.618 or 3.382 to 3.618) are the zones of big impulse moves.
The blue zones, or the 618 to 1 zones are the zones where the price consolidates.
The remaining, i.e., the 1 to 1.382 or 2 to 2.382 zones are the zones of impulse moves too, but the moves are not as strong as the moves in the pink zones.
Fibonacci Channel:
For making a Fibonacci Channel here, we will do the exact opposite of the instructions given by TradingView for it. I have tried this on Gold too, where it works very perfectly! Check out the XAUUSD idea through the link at the end of this idea.
TradingView states that, in order to make a Fibonacci Channel in an uptrend, we need to start with the 2 lows and then put the third point on the high coming between these two lows. This idea works perfectly if the trend continues upwards. But, what to do in the situation of reversals?
So, in order to trade the trend reversals, we will draw it in the opposite way. We are not starting with the lows; we will first take the 2 highs and then the low between them. Check out the below chart image for reference. I have marked it with A, B and C.
By this, you will get the levels, on the basis of which, you can set the targets. Always confirm the next move by a pullback. You can trade with this tool by taking the help of the Fib Time.
What is the current scenario?
I have marked the reversal points by pink arrows and consolidation zones with pink boxes and black arrows. Here, we are currently entering into the consolidation phase, which might end by Feb 15. Check out the Pink Dashed arrow for reference. We might see another major and last dip around 6th March!
Comment down your doubts and trade safe!
Note
Didn't go as planned. but this blue zone is our zone to short. Take proper confirmations before taking the trade. Formed bearish engulfing on 4 hourly chart.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.