Fibonacci levels are a technical analysis tool that helps identify potential correction and continuation levels. Based on the Fibonacci number sequence and the golden ratio.
🕯 Main levels:
🔹 0.236 — weak correction
🔹 0.382 and 0.5 — average correction
🔹 0.618 and 0.786 — deep correction
🔹 1 and above (extensions) — targets when breaking the trend
🤓 How to use the Fibonacci indicator:
▪️ Applied according to impulsive movement: from minimum to maximum (in a bullish trend) or from maximum to minimum (in a bearish trend).
▪️ Price often accumulates at levels 0.382, 0.5, or 0.618 before continuing the trend.
▪️ Levels serve as guidelines for entry, profit taking, and setting stop-losses.
🧐 Application strategies:
🔹 Retracement and continuation — entering a trade from key levels after confirming a reversal.
🔹 Combining with the trend — opening a position in the direction of the main trend after a retracement to the Fibonacci level.
🔹 Extension levels (e.g., 1.618) are often used as profit targets.
🛍 Probability of execution:
▪️ High effectiveness in a pronounced trend and after strong impulsive movements — probability of execution up to 75%.
✔️ Recommendations:
🔸 Works best in conjunction with support/resistance levels, trend lines, and candlestick analysis.
🔸 Use confirmation (e.g., MACD, RSI, or volume) before entering.
🔸 Do not blindly open trades just because a level has been reached — the price reaction is important.
📌 Remember: Fibonacci levels are not magic, but a way to determine the area of probable interest for market participants.
✔️ I would be pleased to know that my work has not been in vain. Your support and feedback always inspire me to continue sharing quality content.
