Many people use Fibonacci retracement to find positions to 'catch falling knives', especially focusing on the magical 0.618 area.

But in reality, its true purpose is not to make you guess, but to help you judge—whether this wave of increase has continuity.

If the pullback holds above 0.382 or 0.618, and shows a clear stop-loss structure, it means the trend structure is still intact, and the market is likely to continue.

However, if it can't even hold above 0.618 and even falls to 0.786, it indicates that this wave may just be a spike—not a major rise, but rather a fluctuation.