Fibonacci Retracement Level

Fibonacci retracement levels, which derive from the Fibonacci sequence, are horizontal lines that show potential areas of support and resistance.

A percentage is connected to each level. How much of a previous move the price has retraced is shown by the percentage. There are four Fibonacci levels for retracement: 23.6%, 38.2%, 61.8%, and 78.6%. Even though it’s not really a Fibonacci ratio, 50% is also employed. The indication may be created between any two important price points, such as a high and a low, making it handy. The levels between those two spots will subsequently be created by the indicator.