Mastering Fibonacci Levels in Trading

Fibonacci retracements are a powerful tool for identifying potential support and resistance levels in the market. Here's the straightforward approach:

**For Uptrends**
When price is moving higher, locate your most recent swing low—this is your starting point. Then identify the swing high that followed. Draw your Fibonacci sequence from that low point up to the high. This gives you your key retracement levels to watch.

**For Downtrends**
The logic flips. Find your recent swing high first, then the swing low that came after. Draw your Fibonacci lines from the high down to the low. These levels now become your resistance zones in a declining market.

The beauty of this method is its simplicity—you're essentially mapping the natural rhythm of market moves. Whether you're watching Bitcoin, Ethereum, or any other major asset, these Fibonacci levels consistently act as turning points where traders accumulate and exit positions.