FREE PRICE PATTERN GUIDE: https://www.netpicks.com/go/pricepatternguide/ Fibonacci levels are just a tool and like any tool and any type of trading system, the usefulness depends on the user and the rules they follow in their application. You have probably heard that the main knock of Fibonacci levels is: “place a bunch of Fibonacci retracements and extensions on your charts and some are bound to be hit.” While that may be true, there are several ways that may help you get a handle on Fibonacci retracement trading to find potential reversal points on your chart. Using Fibonacci Retracement Levels These are the levels that you would use to find support or resistance in your given instrument. The issue has always been where to start and end the measurements. Taking a step back, ask yourself what are these levels representing? For me, they are a measure of human behavior and are a framework to understand emotional extremes. Given how I look at the representation, I look to the overall move, the obvious swings (can be subjective) and also to pockets of consolidation. My mentor when I was learning the basics of Fibonacci would also use thrust bars and gaps which show where extreme action resides. The retracement levels I use from the Fibonacci sequence are 38.2 and 61.8 because less clutter on the chart will show you the most important variable – price. Let’s go through a simple example using Fibonacci retracements to find resistance in a down trending market – BTCUSD #netpicks FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. NetPicks Services are offered for educational and informational purposes only and should NOT be construed as a securities-related offer or solicitation or be relied upon as personalized investment advice. We are not financial advisors and cannot give personalized advice. There is a risk of loss in all trading, and you may lose some or all of your original investment. Results presented are not typical. Please review the full risk disclaimer: https://www.netpicks.com/risk-disclosure