🎯 Fibonacci Retracement: The Key Tool for Analyzing Market Trends

🔢 What is Fibonacci Retracement?

Fibonacci retracement is a tool used to predict potential reversal points in a price trend. It relies on key levels derived from the Fibonacci sequence: 23.6%, 38.2%, 50%, 61.8%, and 78.6%.

📊 How to Use It:

Step 1: Identify the high point and low point of a trend.Step 2: Apply the Fibonacci retracement tool between those two points.Step 3: Pay close attention to price behavior around key levels, especially 61.8% (The Golden Ratio).

🚀 Why Is It Important?

In bullish markets, it helps identify ideal buying opportunities.In bearish markets, it pinpoints resistance and support zones.Combining it with RSI or candlestick patterns increases signal accuracy.

💡 Pro Tip:

The 50% level isn’t an actual Fibonacci number, but it often acts as a critical psychological support/resistance zone in market analysis.

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