Fibonacci Retracement: The Golden Ratio in Trading

Nature follows math. So does the market. Fibonacci retracements are horizontal lines that indicate where support and resistance are likely to occur.

Key Levels

• 0.618 (The Golden Ratio): The most critical level. Prices often bounce here.
• 0.5 (50%): Not a Fib number, but a major psychological level.
• 0.382: Integrating shallow pullbacks.

How to Draw

In an uptrend: Draw from the Swing Low to the Swing High. In a downtrend: Draw from the Swing High to the Swing Low.

Calculate exact Fib levels for any price move with the Fibonacci Calculator.