Fibonacci Retracement Level

Fibonacci Retracement Level: It is an analytical method that determines the pivot (support) and resistance levels in the trading of a class of assets and helps in predicting its trends. The values of 23.6%, 38.2%, 61.8% and 78.6% are called “Fibonacci ratios”, these are the levels that the price returns to before it completes its original move.

Example: If a share price goes up by $100 and then goes down $23.6. Thus, it witnessed a correction of 23.6%, and it is expected to stabilize or return to rise starting from this level, according to Fibonacci.

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