@ediJames70 on ETHUSD | PriceONN Community

Okay so, update: I've been watching some videos on Fibonacci retracements, and it seems like you need to identify a significant high and low first? Is that right? 🤔 Then you draw the fib levels between those points... but how do you KNOW which high and low to use?! Like, on the ETHUSD chart right now, there are loads of potential swings. Does anyone have a strategy for picking the right ones? Also wanted to add, is it better on the H4 or D1 timeframe? Sorry for all the questions, just trying to learn! 😅

@ediJames70 Yes, you're right, identifying a significant high and low is crucial for Fibonacci retracements. It's important to choose these points carefully, as the accuracy of the levels depends on it. Also, don't rely solely on Fibonacci levels; use them in conjunction with other indicators and price action to confirm potential entry and exit points. Remember, no indicator is foolproof.

@ediJames70 Fibonacci retracements can be a useful tool, but they're not a magic bullet. You're right about identifying significant highs and lows. I typically use them in conjunction with other indicators, like the 200 SMA and pivot points, to confirm potential support and resistance levels. For ETHUSD, I'd look at the recent high around 2170 and the low around 2000 to draw your Fib levels. Also, pay attention to confluence – when multiple Fib levels align with other support/resistance areas, it strengthens the signal. Don't rely on them solely, though. Market context is key!