When you are in ATH territory also known as price discovery area it can be tough to know when to enter/exit a trade.
For this reason, I LOVE the Fib Extension tool to help identify potential areas of interest to take profit, exit, or scalp. It can also help you set targets before it gets to ATH territory.
Most popular levels 100%, 161.8%, 200%, 261.8%.
It’s good to wait to see how price action acts at these levels. Also, price could snag on levels before these, but good to know that these are the most popular areas of interest. This isn’t a full proof system but it is very common for traders to use these levels as exits and to take profits.
This could also be a good target to short or enter on a bounce off of support.
Komen
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Perfectly tapped the 1.618 as I showed above
Komen
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Perfectly trading off of fib levels and bollinger band top and 20 MA. $140 is next but $145 coming soon. Keep playing the bounces until deviation. AVAX #avalanche
How did u chose the bottom of the fib extension? Why not the 82$ or 81$ wick?
DaCryptologist
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@Yewla, I usually use the last major pull back on a LTF (H4 or H1) if it is running hot. If it has been trading under ATH for a long time I will use ATH to the bottom to see macro view.