The Fibonacci tool is mainly used in trading in two ways:

RETRACEMENT and EXTENSION.

1️⃣ The retracements predicts where the price will pullback to (entry levels).

2️⃣ The Extension predicts the levels that the price will push to beyond the initial trend (exit levels).

Identify swings to find Fibonacci retracement levels. Identify the recent Swing Highs (SH) and Swing Lows (SL).

↗️ UPTRENDS: start from Swing LOW to Swing HIGH.

↘️ DOWNTRENDS: start from Swing HIGH to Swing LOW.

➡️ When the price returns to the 0.5%-0.62% area you can look for buys (uptrend) or sells (downtrend).