Fibonacci (Retracements & Extensions)
Levels derived from Fibonacci sequence, used to identify hidden supports/resistances.
Neutral
Difficulty: ●●○○○
Reliability: 7/10
Key ratios: 23.6%, 38.2%, 50% (not Fibo but standard), 61.8% (golden ratio), 78.6%.
Retracement
From end of move back to start, ratios indicate where correction may halt. 50-61.8% zone most watched.
Extension
Beyond 100%, projects continuation targets. 127.2%, 161.8%, 261.8% most watched.
Confluences
Real usage: combine Fibo with other signals (historical S/R, trendlines, volume profile POC). 61.8% + old support = near-guaranteed reaction zone.
When to look
On any clear directional move.
Confirmation
Level reaction (wick rejection or reversal pattern) + other confluence = setup.