Trading Cryptocurrencies Using Fibonacci Harmonic Patterns

Fibonacci harmonic patterns are commonly used by traders to identify buy and sell signals. They're statistical patterns with many variations that have been profitable in the long-run since the early 2000's.

Here's a quick overview of a Fibonacci Bat pattern:

• D is the buying or selling price
• X is typically the stop loss price, but it should be slightly lower/higher
• B is typically the take profit price

Here's a market example of a Dash/USD trade using a 3 hour chart:

• Buy at $305
• Take profit at $345
• Stop Loss at $280

Risk/Reward Ratio

Risking: $305 - $280 = $25
Potential Profit: $350 - $305 = $45 or 14.75%
Risk/Reward Ratio: $45/$25 = 1.8

To stay profitable in the long-run, make sure that you're risking at least as much as your potential return, which means maintaining a risk/reward ratio of at least 1.

Happy trading!