#tradingchart

In trading charts, "Fib" refers to Fibonacci levels or Fibonacci retracement levels. These levels are based on the Fibonacci sequence, a series of numbers in which each number is the sum of the two preceding numbers (1, 1, 2, 3, 5, 8, 13, etc.).

Fibonacci levels are used in technical analysis to identify potential support and resistance levels, as well as to predict price movements. The levels are calculated by taking two extreme points on a chart (e.g., a high and a low) and dividing the vertical distance between them by the key Fibonacci ratios:

- 23.6%

- 38.2%

- 50%

- 61.8%

- 76.4%

These levels are then plotted on the chart, creating a grid of potential support and resistance levels. Traders use these levels to:

1. Identify potential reversal points

2. Set profit targets

3. Place stop-loss orders

4. Confirm trend direction

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