Burger Dominance is Back!

• BTC (Fox): The newsletter long call from two newsletters ago hit entry at 82337 and reached its main objective at 93878.8, for a 14%+ unleveraged move to the upside.

• SAGA (Fox): Telegram long call hit entry at 0.2193 reached its main objective at 0.2441 for an 11%+ unleveraged move to the upside.

• LINK (Daniel): The most recent NL long was $10.70 before the tariff pause. ~33% move.

• LINK (Daniel): A $12.3 leveraged bid on LINK has hit $14.3 so far, for a ~16.5% move.

• SUI (Daniel): Longed $1.85, price has hit highs of ~$2.75 for a +47% move. Huge spot win, approaching TP level $2.85. 

• SOL (Daniel): Spot longs from two weeks back at $108 avg cost,

• HYPE (Daniel): Spot/low lev longs from $15.3 hit $19.32, probably hits TP1 $19.40.

Fibonacci Trading 101

## What are Fibs?

Fibs, or Fibonacci Retracements, are a special type of Support & Resistance. When you draw a Fibonacci retracement, you'll be met by a whole bunch of levels, and while it may look overwhelming at first, it's quite simple.

Fibs are just minor S/R levels at certain ratios; so when you draw a Fib, the 0.5 Fib would just mean price has retraced half of the move when it reaches it. The 0.618 Fibonacci ratio would suggest that the price had retraced 61.8% of the move.

## Why is it relevant?

The market tends to move in and respect these ratios. This is partly due to the natural psychology of people as they trade, and part of it is a self-fulfilling prophecy, as more big players use a specific level, the level naturally becomes more accurate.

On its own, Fibs hold no relevance, nor do any other indicators or other TA tools. But by understanding the probabilities surrounding certain levels, using them in conjunction, and determining the right stops and targets, we can use Fibs highly effectively for both entry and exit strategies.

## Quick Setup

To draw a Fib, we'll look for this symbol on the left bar of TradingView or your exchange. Most charts will have it.

When you select it, you need to select two points on your chart to draw the Fibonacci line between. Just put one on your chart anywhere to start so that we can change some settings.

Once it's on your chart, double-click one of the lines or click the settings icon that appears when the line is selected. In the images below, you'll see my baseline settings. You're free to change the styling in any way you see fit. There are a few important things to keep in mind. 

1. The specific levels. I'll cover specific strategies for these levels.

2. At the bottom, we want to turn on 'Fib levels based on log scale' as that helps avoid some scaling issues on high timeframes.

## Drawing Fibs

When drawing Fibs, we want to understand that we're always drawing bullish or bearish retracements, so we always draw from left to right. In the following example, we're looking at a bullish retracement. The price is trending up locally and then pulls back from a pump before continuing to rise. Notice how the 1 Fib, our first click, is located at the bottom left, while the 0 Fib is at the top right. Every bullish retracement is drawn in this way.

Bearish retracements would simply be the inverse of this. The 1 Fib is in the top left, while the 0 Fib is in the bottom right. On a bearish retracement, we'd be looking for a bounce to make a lower high before continuing down.

## Basic Use Cases

I have two ways I like to use Fibs, let's go over what those ways are.

1. Dip buys

   We already saw an example of this earlier, but a common setup for a Fib trade is to look for dips to around the golden pocket* to take a bid target back to the local highs while setting your stop below the 1 Fib. We'd only want to use a setup like this in a strong uptrend, or when we see a clear pattern emerge of consistently higher lows in golden pockets. (You can flip this for the short side as well.)

*The area between the 0.618 Fib and the 0.66 Fib.

2. Price Targets

   Arguably, my favourite use case for Fibs is price targets. Once the price breaches a 1 Fib, it will naturally trade towards the 1.272 and 1.618 Fibs. Let's look at the following example from the Bitcoin Monthly time frame. We take the 2017 ATH as our 1 Fib, draw it down to the bear market low (our 0 Fib), and then we're left with price targets. And those targets hit perfectly. We can use this technique on any timeframe or ticker, and it can be used in tandem with whatever other strategy you want. 

Even on many of my non-Fib related entry strategies, you'll still find me using Fibs to find those perfect price targets.

As with any tool, using it without a proper strategy is pointless, but I find Fibs have always been a useful and consistent tool to pair with my trades.

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