Fibonacci Retracement

Fibonacci Retracement is a tool used in technical analysis to predict potential support and resistance levels in financial markets. It’s based on the Fibonacci sequence, a series of numbers where each number is the sum of the two preceding ones. Traders use key Fibonacci ratios (23.6%, 38.2%, 50%, 61.8%, and 100%) to identify where a price might reverse after a move. By plotting these levels on a price chart, traders can gauge potential areas where prices may bounce back or face resistance, helping them make informed decisions about buying or selling assets.