Module 4: Technical Analysis

Fibonacci Retracement

5 min read

Fibonacci retracement levels mark common pullback depths within a move.

How to apply it

Draw from a swing low to a swing high in an uptrend (the reverse in a downtrend). The tool shows levels at 23.6%, 38.2%, 50%, 61.8% and 78.6%. Traders watch these for possible reactions, especially where they line up with support or resistance.

The levels have no special power on their own; they are popular reference points.

Key takeaways

Draw from swing to swing in the trend's direction.
38.2%, 50% and 61.8% are most watched.
Look for confluence with other levels.

Educational content only, not financial advice. Trading forex and CFDs involves significant risk of loss.