📊 A strong strategy for accurately catching retracements.
(Fibonacci + RSI divergence)
If you're looking for a clean entry with minimal risk… this setup is one of the strongest ways to catch the bottom with real momentum confirmation.
The idea is simple.
The market is going up → it will correct → and reach a strong Fibonacci zone.
At the same time, RSI is showing a bullish divergence.
= This is where smart money starts accumulating… and it's a professional entry zone.
Execution steps.
1) Determine the trend.
Make sure the market is bullish (higher highs and higher lows).
2) Draw Fibonacci correctly.
From the low to the recent high (from wick to wick).
3) Monitor correction zones.
Key zone: 50% – 61.8%.
The picture shows that the best entry was around 50%.
4) Wait for confirmation (the most important).
RSI indicator shows bullish divergence.
Means the price is making a lower low, but RSI is making a higher low.
→ Signal that the downtrend is weakening and an uptrend might start.
Entry point.
Entry from the 50% zone after divergence appears.
Stop loss.
Below 61.8% or below the entry candlestick low.
Targets.
First target: retest the high.
Second target: continuation of the bullish trend.
Why is this strategy strong?
Combines an important price level + momentum confirmation.
Keeps you away from random entries.
Gives you an edge on entry timing instead of buying at the peak.
Common mistakes to avoid.
Entry without divergence on RSI.
Wrong Fibonacci drawing (from the body of the candle, not the wick).
Enter before the price reaches a strong zone.
Ignore the overall trend.
Best settings.
Main timeframe: 4H / Daily to determine the trend.
Entry timeframe: 15M – 1H.
RSI: default settings (14).
Finally.
Not any correction is a good entry…
But when the price reaches a strong Fibonacci zone + RSI gives you divergence.
That's when you're in with real movement, not guessing.
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