#tradeanalysis FIBONACCI RETRACEMENT AND WHY IT MATTERS

Fibonacci retracement is a technical analysis tool used to determine potential support and resistance levels by analyzing the vertical distance between two extreme points, typically a high and a low. It is based on the Fibonacci sequence, a mathematical pattern discovered by Italian mathematician Leonardo Fibonacci in the 13th century. The sequence, where each number is the sum of the two preceding ones, gives rise to ratios that are widely observed in nature and, intriguingly, financial markets.