Fibonacci Trading

Use Fibonacci ratios to identify support, resistance, and price targets.

What is Fibonacci?

Fibonacci ratios (23.6%, 38.2%, 50%, 61.8%, 78.6%) are derived from the Fibonacci sequence. In trading, these levels help identify potential reversal points and price targets.

"The Golden Ratio (61.8%) appears throughout nature and markets."

>Golden Ratio

61.8%

The Most Important Level

Fibonacci Retracement

Entry Levels

Retracement levels help identify potential support/resistance during pullbacks in a trend.

23.6%

Shallow retracement, strong trend

38.2%

Common pullback level

50%

Half-way retracement

61.8%

Golden ratio, most important

78.6%

Deep retracement

Fibonacci Extension

Target Levels

Extension levels help identify potential profit targets beyond the original move.

127.2%

First extension target

161.8%

Golden ratio extension

200%

Double the original move

261.8%

Extended target

How to Draw Fibonacci

In Uptrend

1. Click on the swing low
2. Drag to the swing high
3. Buy at retracement levels

In Downtrend

1. Click on the swing high
2. Drag to the swing low
3. Sell at retracement levels

Fibonacci Trading Strategy

Identify Trend

Find clear swing high and low

Draw Fibonacci

Connect swing points

Wait for Pullback

Look for price at key levels

Enter with Confirmation

Use candlestick signals

Pro Tips

• Combine with support/resistance zones
• Use multiple timeframes for confluence
• Look for candlestick confirmation at levels

Common Mistakes

• Drawing on wrong swing points
• Using Fibonacci alone without confirmation
• Ignoring the overall trend direction

>Fibonacci Wisdom

"Nature's proportions guide the market's movements."