First, the normal Fibonacci retracement is applied from the swing low to the swing high to understand where price can take support during a pullback. In this chart, price came down into the 0.5 to 0.618 zone, which is considered a strong buying area. This zone also matched with the horizontal support, so buyers entered from there and pushed the price up.
Now coming to the trend-based Fibonacci, it is used to understand the continuation of the trend and future targets. For this, we take three points — swing low, swing high, and the pullback low. Once applied, it gives extension levels where price can move next.
In this case, after the pullback, price started moving up strongly, which confirms trend continuation. As per the trend-based Fibonacci, the next targets are around 1.272 near 1200, 1.414 near 1250, and 1.618 near 1300 levels.
So overall, Fibonacci retracement helped us find the buying zone, and trend-based Fibonacci is helping us project the targets in the ongoing uptrend.
Now coming to the trend-based Fibonacci, it is used to understand the continuation of the trend and future targets. For this, we take three points — swing low, swing high, and the pullback low. Once applied, it gives extension levels where price can move next.
In this case, after the pullback, price started moving up strongly, which confirms trend continuation. As per the trend-based Fibonacci, the next targets are around 1.272 near 1200, 1.414 near 1250, and 1.618 near 1300 levels.
So overall, Fibonacci retracement helped us find the buying zone, and trend-based Fibonacci is helping us project the targets in the ongoing uptrend.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.