Tip:

When you're looking for a pullback, after you evaluated the key areas of your interest, try to find confluences using reverse extensions.

I already shared one of the most powerful setups for extensions and since it's incredibly well valid for calculating targets during price discovery, it's incredibly valid for calculating downside targets as well.

Since institutional trading algorithms are set to specific fibs, price often reacts precisely at those levels, both during expansions and pullbacks.

After a reclaim of a key swing, reverse extensions help map out where liquidity is likely to rest, allowing you to anticipate PB zones that align with algo behavior.

When these levels align with other confluences like OBs, FVGs, or previous structure, the probability of a meaningful reaction increases significantly.

Not every time you will be able to find interesting levels where the price can retrace into and reverse fibs will help you catching a move.

Start making practice, start individuating the most important swings of a structure, start familiarizing with this setup.