Fibonacci Retracement Levels
Fibonacci retracement helps traders identify potential support, resistance and reversal zones during a pullback.
1- 23.6%: Shallow pullback; indicates strong trend momentum.
2- 38.2%: Healthy correction; trend may continue quickly.
3- 50%: Psychological midpoint and common reaction zone.
4- 61.8%: The Golden Level; an important reversal zone.
5- 78.6%: Deep retracement; the original trend is weakening.
6- 100%: Price returns to the starting swing point, indicating complete retracement.
In an uptrend, draw Fibonacci from swing low to swing high. In a downtrend, draw it from swing high to swing low.
These levels represent zones—not exact prices. Confirm them using price action, volume, candlestick patterns, trendlines, or support and resistance.
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One glance.
When they disagree, the real move is about to start.
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The first 30 minutes of every NY session is manipulation.
9:30 to 10:00 NY time.
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