𝑊ℎ𝑎𝑡 𝑖𝑠 𝑡ℎ𝑒 𝐹𝑖𝑏𝑜𝑛𝑎𝑐𝑐𝑖 𝑅𝑒𝑡𝑟𝑎𝑐𝑒𝑚𝑒𝑛𝑡?
$SOL #
It’s a tool traders use to predict potential areas where the market price might pull back (retrace) before continuing in its original direction.
The main important levels are:
23.6%
38.2%
50%
61.8%
78.6%
These are areas where price often reacts — either pausing or reversing.
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How to draw Fibonacci on a chart:
If the market is in an uptrend:
Draw from the lowest point (swing low) to the highest point (swing high).
If the market is in a downtrend:
Draw from the highest point (swing high) to the lowest point (swing low).
Your chart will now display those Fibonacci levels.
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Where to Enter, Set SL, and TP
For a Buy Trade:
Look for a pullback around the 50% or 61.8% level.
If price shows support (like a bullish candle pattern), enter a Buy.
Stop Loss: A little below the 78.6% level.
Take Profit:
First TP at 38.2%
Second TP at 0.0% (the previous high)
For a Sell Trade:
Look for a retracement around the 50% or 61.8% level.
If price shows resistance (like a bearish candle), enter a Sell.
Stop Loss: A little above the 78.6% level.
Take Profit:
First TP at 38.2%
Second TP at 0.0% (the previous low)
Quick Pro Tip:
Never rely on Fibonacci alone. Always combine it with other confirmations like:
Price action (candlestick patterns)
Trendlines
Support & resistance levels
Indicators like RSI or Moving Averages.