Fibonacci Retracement

What is Fibonacci Retracement?

Fibonacci retracement is a technical analysis tool that uses horizontal lines to indicate areas where a financial instrument may experience support or resistance at the Fibonacci levels before it continues to move in the original direction. These levels are derived from the Fibonacci sequence and are commonly used in conjunction with trend lines to find entry and exit points in the market. The most popular levels are 23.6%, 38.2%, 50%, 61.8%, and 100%.