## What Are Fibonacci Retracement Levels?

Whenever the stock moves **either upwards or downwards sharply**, it usually tends to **retrace back before its next move**. For example, if the stock has **run up from Rs.50 to Rs.100**, it is likely to retrace back to **probably Rs.70 before moving Rs.120.**

The Fibonacci ratios, i.e.** 61.8%, 38.2%, and 23.6%,** help the trader identify the **retracement’s possible extent.**

Fibonacci discovered Fibonacci numbers.,

the series is the** sum of the previous two numbers.**

The Fibonacci sequence is as follows:

0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610…

Divide** any number in the series by the previous number**; the** ratio is always approximately 1.618.**

when a number is in the Fibonacci series is divided by its immediate succeeding number. 0.618 or 61.8%.

It is believed that the Fibonacci ratios, i.e. **61.8%, 38.2%, and 23.6%,** finds its application in stock charts.

Fibonacci retracement levels are horizontal lines that indicate **where support and resistance are likely to occur.**

How does the Fibonacci retracement work?

it can be drawn between any** two significant price points, such as a high and a low.**

The Fibonacci retracement levels are 23.6%, 38.2%, 61.8%, and 78.6%

fibonacci retracement strategy

fibonacci retracement golden ratio

The golden ratio is the ratio between 1.618 and 1