📊 What is Fibonacci Retracement?
Fibonacci Retracement is a popular technical analysis tool that helps traders identify support and resistance levels based on key percentages: 23.6%, 38.2%, 50%, 61.8%, 100%.
🔢 The levels are calculated based on the Fibonacci sequence, a mathematical pattern where each number is the sum of the two previous ones.
📈 How does it work?
This tool indicates at which levels the price is likely to roll back (correct) before continuing its movement. Traders use it to determine entry, exit and stop points.
✅ Tip: Fibonacci is not magic, but an indicator of the area of interest, which is best used in conjunction with other analysis tools.
