How to Draw Fibonacci Retracement Using Fibonacci is easy. But drawing it from the wrong points can completely change your analysis. If you want Fibonacci to be useful, the first step is choosing the correct swing points. 🔹 1️⃣ In an Uptrend When price makes a strong move upward, start your Fibonacci from the major swing low and drag it to the major swing high. For example: $BTC moves from $80K → $100K. You would place: 📍 Start: $80K swing low 📍 End: $100K swing high Now the Fibonacci levels show potential retracement zones if BTC starts pulling back. 🔻 2️⃣ In a Downtrend Reverse the process. Start from the major swing high and drag Fibonacci down to the major swing low. For example: BTC falls from $105K → $85K. 📍 Start: $105K swing high 📍 End: $85K swing low This allows you to watch potential areas where price could retrace before continuing lower. 3️⃣ Use Clear Swing Points This is where many beginners go wrong. Don't pick random highs and lows just because the Fibonacci levels look perfect. Look for clear, meaningful swing points that created a significant price move. Ask yourself: ▪️ Was this a major high or low? ▪️ Did price make a strong move from here? ▪️ Is the swing obvious on the timeframe I'm trading? ⚠️ Why Does Placement Matter? Fibonacci levels depend completely on the points you choose. Wrong swing points = misleading levels. Remember: Good Fibonacci analysis starts with good price structure. Don't force the tool to fit your trade. Let the market structure choose your Fibonacci points. 🚀