Technical analysis
Fibonacci retracement
Fibonacci retracement draws levels (38.2%, 50%, 61.8%...) where a price may bounce after a move.
Fibonacci retracement draws levels (38.2%, 50%, 61.8%...) where a price may bounce after a move.
After a rise, price often pulls back by a fraction before resuming. Fibonacci levels help anticipate how far the pullback may go. Many traders use them, which makes them partly self-fulfilling.
After a strong rise, price pulls back to the 61.8% Fibonacci level, then bounces.
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