Fibonacci Levels

Fibonacci Levels (Fibonacci Retracement) are a technical analysis tool used to identify potential support and resistance levels after a strong price move. Traders draw Fibonacci levels between a significant swing low and swing high (or vice versa), which automatically plots key retracement levels such as 23.6%, 38.2%, 50%, 61.8%, and 78.6%. These levels help estimate where a price correction may pause, reverse, or continue in the direction of the prevailing trend. When Fibonacci levels align with other technical factors such as trendlines, moving averages, or candlestick patterns, they often provide stronger confirmation for potential trading opportunities.