Fibonacci Retracement
Support and resistance levels based on Fibonacci ratios.
Full Definition
Fibonacci retracement is a technical tool that uses horizontal lines to indicate potential support and resistance levels based on Fibonacci ratios (23.6%, 38.2%, 50%, 61.8%, 78.6%). Traders draw retracements from swing highs to lows (or vice versa) to identify where pullbacks might find support before continuing the trend.