ETH — Using Fibonacci for High-Precision Trading

2 days ago

Understanding Tools, Confluence & Today’s Setup

I’ve been getting a lot of DMs asking what the best indicator is.
The truth? There is no universal “best indicator” because indicators are tools, and every tool serves a different purpose. Trading is like carrying a toolbox: the skill isn’t in having the tools, but in knowing when and how to use them.

Educational Segment: Why Fibonacci Should Be Your Foundation

After years of studying different systems, I’ve come to a very simple conclusion:
👉 Fibonacci tools are the most powerful and reliable in my entire arsenal.
Why?

• They help you spot reversal zones with precision
  
• They work across all market conditions
  
• They are rooted in natural ratios that markets consistently gravitate toward
  
• They create predictable targets, retracements, extensions, and even timing when used correctly
  

Indicators like oscillators etc. are best used as confirmation, not as the primary signal.
If I had to pick one indicator besides Fibonacci, it would absolutely be the VWAP.

Why the Anchored VWAP Is Incredibly Underrated

• It shows where true volume-weighted market support + resistance lies
  
• It adapts dynamically
  
• It works extremely well as a dynamic support/resistance line
  
• It is fantastic as a trailing stop-loss tool
  
• It helps identify institutional footprints in price structure
  

Fibonacci + VWAP is one of the strongest forms of confluence you can build.

ETH Technical Breakdown

Today, ETH attempted a breakout but the move failed, and the rejection was clean.

ETH rejected at the anchored VWAP aligned with Fibonacci reversal zone:

• ETH tested the anchored VWAP near $3,090 twice, coinciding with the 1.136–1.272 Fibonacci Reversal Zone.
  
• This confluence acted as a strong resistance, leading to a swift selloff soon after.
  

Key Confluence Level Below:
My next major downside target lines up with a cluster of confluences:

• 1.6-1.666 Fibonacci extension
  
• 0.5 Fibonacci retracement
  
• Anchored VWAP (green support line)
  
• Liquidity zone (demand area)
  
• 0.618 Fibonacci speed fan support
  

Educational Takeaway → Confluence Is King

If there’s one lesson to internalize:
The more factors that align at the same level or zone, the higher the probability of a successful trade.

This ETH range has provided several high-quality setups for anyone who understands how to read price through Fibonacci.

Final Notes

ETH remains in a well-defined trading range use confluence, stay patient, and let the market come to your level.

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2 days ago

Trade closed: target reached

Idea played out well, came close to the target before reversing. The next level I'm watching is the weekly VWAP lining up with the 0.618 fib around $2950