Traders often say: the market breathes according to Fibonacci.
And this is not just a beautiful phrase — Fibonacci levels indicate where the price can stop, reverse, or continue in the trend.
🔹 The main idea is simple:
After a strong move, the market usually retraces — by 23.6%, 38.2%, 50% or 61.8% of the previous impulse. These numbers are the 'golden' ratios of nature, found in shells, snowflakes, and even architecture.
🔹 In trading, they help:
Determine where it is profitable to enter a trade in the trend
Find logical levels for stops and targets
Understand where the market 'breathes' — and where a new impulse awaits it
Fibonacci levels are especially powerful when confirmed by other tools: trend lines, candlestick patterns, or volumes.