Learn to use Fibonacci in the market.

I'm so happy to be able to meet again with Steemian's friends this time.

In the previous material, we have discussed quite a lot about market structure.

In this edition, I want to discuss one of the tools that is important, and of course, I always use it when analyzing the market, both crypto and forex markets.

Fibonacci is an indicator in the form of a horizontal line used by traders to indicate future support and resistance points. Can also be used as a tool to find areas of supply or demand.

But many are still confused about using these tools easily.

The following are things you need to pay attention to when using these tools in a market.

In using Fibonacci, we need to look at the market structure by looking at the swing points, like in the following picture.

In the picture above, you can see the demand area at the fibo level of 0.75.

Maybe you are wondering why I chose to use the 0.75 to 0.88 levels as a premium and discount area in determining good supply and demand as well as support and resistance.

Back to the basic concept of economics, namely, the premium price is the price used to sell goods, and the discount price is the low price to buy an item.

The use of fibo levels of 0.75 to 0.88 is a premium and super premium level in a market area, which is also supported by the existence of a supply or demand area.

In the following, I will give a concrete example of using the premium Fibo level in a bearish market combined with the supply area.

In the SUI market as above, it can be seen that the supply area is at a premium level, namely 0.75 Fibonacci.

This is a great confirmation of a Fibonacci pullback from a swing high to a swing low in the bearish market position in the image above.

You can see that the price immediately corrected to touch the previous swing low and may have continued to decline.

This is a good use of Fibo levels when referring to the premium area in a bearish market and the discount area in a bullish market.

Understanding how to use Fibonacci levels in a market structure will, of course, add more confirmation to our analysis or trading plan.

With more and more confirmations, such as a break of structure, supply, or demand, and the use of premium and discount Fibonacci levels, of course we will be more confident in the analysis we make in a trading plan setup.