FIBONACCI RETRACEMENT LEVELS
Fibonacci Retracement Levels identify key support and resistance levels in the market.
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Fibonacci retracements are a technical analysis tool used to identify potential support and resistance levels based on key Fibonacci ratios (23.6%, 38.2%, 50%, 61.8%). In trading, traders use Fibonacci retracements to predict the possible reversal points in asset prices after a significant move. By drawing horizontal lines on a chart, traders look for price corrections that align with these levels, helping them make entry or exit decisions. It's a popular tool for predicting market trends and minimizing risk.