Those of you following the launch of the Bitcoin Futures on the CBOE last night may have noticed our ever present friend Fibonacci lurking in the shadows. Fib levels, both retracements and extensions or projections as you will see them called, are found throughout all asset classes. Charts of equities, fixed income, foreign exchange, commodities, etc. all have numerous examples of adherence to these mystical mathematical levels.
Those of us who do this stuff everyday don’t bat an eye when someone throws out a comment like, “It bounced right at the 38.2% Fib Retracement of the recent rally.” Those of you who aren’t trading geeks and have lives (and friends) are going to have a hard time believing this works. While I could give you countless examples, and have throughout many of my blog posts, here yet is one more:
Bitcoin Futures In Their Infancy Respecting Fibonacci:
A great article on the utility of Fibonacci Numbers as they relate to price can be found here:
OC