• Fibonacci retracement levels connect any two points that a trader considers relevant, usually high and low points.
  • The indicated percentage levels represent areas where the price can stop or reverse.
  • The most commonly used ratios include 23.6%, 38.2%, 50%, 61.8% and 78.6%.
  • You should not rely solely on these levels, so it is dangerous to assume that the price will reverse after reaching a certain Fibonacci level.
  • Fibonacci numbers and sequence were first used by Indian mathematicians several centuries before Leonardo Fibonacci.