This chart illustrates the differences between the linear Fibonacci retracement levels that are generated by the TradingView tool and the Fibonacci retracement levels generated logarithmically (in orange).
For example, retracing 61.8% from the high is computed using the following:
e^(((ln(high) - ln(low)) * (1-phi)) + ln(low))
The two blue lines are computed logarithmically against the 0.04958 -> 0.739 movement from last year -- the higher line is 50% retraced, the lower line is 61.8% retraced. (One of these were mentioned in the linked related idea.)
More than anything, this chart shows that there is a significant difference for values at DOGE/USD's fraction-of-a-dollar level, but that price still seems to respect both.
When you're doing Fibonacci analysis on something below a price value of a couple of dollars, like the current DOGE/USD value, keep in mind that this little extra computing by-hand can provide deeper insights into movements!
For example, retracing 61.8% from the high is computed using the following:
e^(((ln(high) - ln(low)) * (1-phi)) + ln(low))
The two blue lines are computed logarithmically against the 0.04958 -> 0.739 movement from last year -- the higher line is 50% retraced, the lower line is 61.8% retraced. (One of these were mentioned in the linked related idea.)
More than anything, this chart shows that there is a significant difference for values at DOGE/USD's fraction-of-a-dollar level, but that price still seems to respect both.
When you're doing Fibonacci analysis on something below a price value of a couple of dollars, like the current DOGE/USD value, keep in mind that this little extra computing by-hand can provide deeper insights into movements!
