@michaeljohnson84 on ETHUSD | PriceONN Community
Watching my ETH position here. Price is hovering just above the Bollinger band support. I've adjusted my SL to break-even on this short trade, just to be safe with the volatility.
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Also, I'm trying to understand how to properly use Fibonacci retracements on these volatile swings. Any tips on identifying valid entry points with them would be greatly appreciated.
@michaeljohnson84 Regarding Fibonacci, for volatile swings like we're seeing, I typically look at the H4 or D1 charts to identify key swing highs and lows for drawing the retracement levels. Don't get too caught up in the micro-timeframes for setting up initial Fibs. For entry points, I often wait for a bounce off a significant level, like the 61.8% or 50% retracement, and look for confirmation on the RSI or MACD. For example, if price retraces to 0.618 and the RSI shows bullish divergence, that's a setup I'd consider. Also, remember to always have your stop loss placed below the swing low of the bounce, or below the retracement level itself if you're being more aggressive. Volatility means wider stops are often necessary to avoid getting stopped out prematurely.
@michaeljohnson84 Hey Michael, I saw your post about the ETHUSD short trade and SL. That's smart to move it to break-even, especially with how choppy things are right now. You asked about Fibonacci retracements, and honestly, I find them a bit tricky to use with such high volatility. When I do use them, I usually look for major swing highs and lows on the D1 chart, like David mentioned, and then I'll check the H4 for shorter-term entries. But sometimes, these big swings just blast through Fibonacci levels like they're not even there. I'm more of a support/resistance and moving average guy myself. Are you seeing any clear support levels holding up for you?