I noticed that many traders ignore one of the most reliable tools — working with Fibonacci levels based on a clear trend. When I started applying Fibonacci extensions more consciously based on the trend, the results became noticeably better.

Here's what I’ve calculated during my trading time. First, you need to determine the overall market direction — I look at the daily or 4-hour chart to understand whether the price is rising or falling. This is critically important because the entire strategy is built precisely on this foundation.

When the trend is clear, I draw Fibonacci levels from extremum to extremum. In an uptrend — from the low to the high, in a downtrend — the opposite. The key levels I pay attention to are: 38.2%, 50%, and especially 61.8%. It’s often at 61.8% that a bounce occurs, and that’s where the most interesting part begins.

Waiting for the price to reach the desired Fibonacci level is not just about waiting. You need to watch the candles. When you see a hammer or engulfing pattern at the 61.8% level, that’s already a signal. But I don’t enter immediately. I check the RSI — if it exits the oversold zone (above 30 for buying) or overbought (below 70 for selling), then the entry point becomes more reliable.

Fibonacci extension based on the trend helps me set targets. After entering, I place take-profit levels at 161.8% extension or intermediate levels of 38.2%-50% from the entry point. I place the stop-loss below the 78.6% level — this provides a safety cushion, but not too wide.

Practice has shown: it works best in clear trends, not in sideways ranges. I combine it with trend lines or moving averages — this increases confidence in the signal. And most importantly — I never risk more than 1-2% of capital on a single trade, because even the best strategy can sometimes fail.

Currently, the market shows interesting levels. SOL is trading around 85.17 with a minus of 1.05%, BTC is holding at 75.25K with a minus of 0.84%, ETH at 2.31K with a minus of 1.04%. It’s just the time when Fibonacci extension based on the trend can show potential recovery points. I recommend testing this strategy on a demo before applying it live — it will save you a lot of nerves and real money.