Using the Fibonacci Retracement tool to dictate the next entry point.

Trading cryptocurrency can be very easy and difficult at the same time. It will be easy if you understand the market structure and the various candle formation that is trying to communicate. It is also difficult if you can not interpret the various language of the candle formation.

Understanding the different candle patterns is a key factor that can make you a successful trader. Don't get me wrong please, knowing the various candle formation indeed passes information but that doesn't mean that the market always will go as predicted.

The crypto market deals with human emotions and psychology hence this alone can change the trend of the market after forming a pattern that ordinarily should have caused an uptrend or downtrend movement. That being said, let's look at how one can be able to know what to do in the market when looking for an entry position.

The Fibonacci retracement tool is a powerful tool used by traders in the crypto, stock, or forex market. This tool tells the user how far the market can retrace after going in a particular direction before it can start another movement. There are also important points of retracement that the market often respects so much and the chart above shows them clearly.

From the example in the chart, the market was initially in a downtrend but when it broke the last LH which initially acted as resistance, then it moved upward. As a trader, you are not to enter the trade at that point because the market can deceive you hence you wait for that move to finish and then retrace back before you can enter the market.

To get your entering position, you need to use the Fibonacci and draw from the beginning of the uptrend to the end of the uptrend as seen in the chart in that way, you can see that the retracement took place exactly 38% which forms a new support level for the trend hence those wish to enter the market must enter once the trade hit the retracement level again.

I will be publishing more post on how you can enter and trade the market using the Fibonacci retracement tool. This tool is indeed a powerful tool that has helped a lot of traders because you will be certain about the movement and no emotions or sentiments attached as the tool has proven to be effective more than 98% times in the market. I hope you have gotten something new today and i will do my best to share more info about trading strategy.

Always know when to enter and exit the market and that way, you can maximize your profits and minimize your losses. Best of luck guys as you go into your crypto, forex or stock trading journey. I'm optimistic that this information will help you greatly in this journey.