A strong strategy for catching rebounds: Combining Fibonacci + RSI Divergence
One of the most powerful entry methods after a short downtrend within an overall uptrend is to combine:
1️⃣ Fibonacci levels to identify where the correction might stop 2️⃣ Hidden positive divergence on RSI to confirm the continuation of the uptrend
How to use:
• Identify the trend low and then the high. • Draw the Fibonacci from the low to the high. • Watch the 38.2% – 50% – 61.8% levels, as they are the strongest rebound zones. • If the price bounces from the 50% area or nearby, that’s an initial signal.
Main entry signal: When the price drops to a strong Fibonacci level (like 50%) and a hidden positive divergence forms on the RSI (the price makes a lower low while the RSI makes a higher low)
➡️ Here, we consider the correction to be over and expect the uptrend to resume.
📈 Entry: After a reversal candlestick appears at the Fibonacci level, preferably above 38.2%.
📉 Stop loss: Below the 61.8% Fibonacci level.
🎯 Exit targets: • First target at the 38.2% level • Second target at the previous high • You can continue if strong buying appears
Why does this method work? Because divergence tells you the real upward momentum isn’t over, and Fibonacci pinpoints exactly where the correction ends.
Combining both indicators gives you an early, precise entry with very low risk... $GT
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A strong strategy for catching rebounds: Combining Fibonacci + RSI Divergence
One of the most powerful entry methods after a short downtrend within an overall uptrend is to combine:
1️⃣ Fibonacci levels to identify where the correction might stop
2️⃣ Hidden positive divergence on RSI to confirm the continuation of the uptrend
How to use:
• Identify the trend low and then the high.
• Draw the Fibonacci from the low to the high.
• Watch the 38.2% – 50% – 61.8% levels, as they are the strongest rebound zones.
• If the price bounces from the 50% area or nearby, that’s an initial signal.
Main entry signal:
When the price drops to a strong Fibonacci level (like 50%)
and a hidden positive divergence forms on the RSI
(the price makes a lower low while the RSI makes a higher low)
➡️ Here, we consider the correction to be over and expect the uptrend to resume.
📈 Entry:
After a reversal candlestick appears at the Fibonacci level, preferably above 38.2%.
📉 Stop loss:
Below the 61.8% Fibonacci level.
🎯 Exit targets:
• First target at the 38.2% level
• Second target at the previous high
• You can continue if strong buying appears
Why does this method work?
Because divergence tells you the real upward momentum isn’t over, and Fibonacci pinpoints exactly where the correction ends.
Combining both indicators gives you an early, precise entry with very low risk... $GT