What are the advantages and disadvantages of using fib extension and retracement as technical analysis tools in the world of cryptocurrencies?

1 answers

• Dec 26, 2021 · 3 years ago
  As an expert in the field of cryptocurrencies, I can say that Fibonacci extension and retracement are commonly used tools for technical analysis. The advantage of using these tools is that they can help identify potential price levels where a cryptocurrency may reverse or continue its trend. By drawing Fibonacci levels based on previous price movements, traders can anticipate support and resistance levels. However, it's important to note that Fibonacci levels are not always accurate and should not be used as the sole basis for trading decisions. It's crucial to consider other factors such as market trends, volume, and news events. At BYDFi, we recommend using Fibonacci extension and retracement as part of a comprehensive technical analysis strategy that includes multiple indicators and risk management techniques.
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