Fibonacci Retracement – Smart Tool for Entry in Ongoing Trends

Fibonacci levels are not magic — they reflect market psychology and common retracement zones after a move. 🔹 Most common levels: 38.2%, 50%, and 61.8% 🔹 Works best in trending stocks after impulsive moves ✅ How to Use It: In an uptrend, draw fib from swing low to swing high Watch for retracement to 38.2% or 61.8% zone Combine it with bullish candlestick or volume confirmation for entry 📌 Example: Stock rallies from ₹100 to ₹150 → Retraces to ₹123 (38.2%) and forms hammer candle with rising volume = High-probability swing entry 🧠 Fibonacci works best when aligned with support/resistance or moving average confluence. Avoid using it in sideways markets