1. What Is a Fibonacci Retracement?
A Fibonacci retracement is a technical tool for estimating how far price may pull back after a large move. It is based on the Fibonacci sequence found in nature.
2. Key Levels
Fibonacci retracement levels:
23.6% — Shallow retracement, strong trend
38.2% — Typical retracement
50.0% — Midpoint retracement, a psychological level
61.8% — Golden-ratio level, the most important here
78.6% — Deep retracement, weakening trend
💡 61.8%: The Golden-Ratio Level
The guide treats this as the most important level. A rebound here suggests a higher likelihood of trend continuation; a break below increases the possibility of a trend reversal.
3. How to Use It
- Uptrend — Draw the Fibonacci tool from the low to the high
- Downtrend — Draw it from the high to the low
- Watch for price reactions at 38.2%, 50%, and 61.8%
- A level combined with a reversal candlestick pattern serves as an entry signal
4. Fibonacci Extensions
Fibonacci extensions estimate how far price may move. Major levels are 127.2%, 161.8%, and 261.8%, used as take-profit targets.
5. AI and Fibonacci
AI calculates Fibonacci levels automatically and cross-checks them with other indicators to find higher-probability entry points.
🃏 AI Calculates Fibonacci Levels Too
AI analyzes the levels without requiring you to draw them manually on a chart.
Start in the bot