Fibonacci Retracement in Trading: How to Draw and Use the Key Levels
Fibonacci retracement is a charting tool that marks horizontal levels at set percentages of a price swing, most commonly 23.6%, 38.2%, 50%, 61.8% and 78.6%. Traders draw it from a swing low to a swing high, or the reverse, to see where a pullback might pause. The levels are widely watched, but they are not predictive, and price often moves straight through them.