: Used to identify potential pullback levels within an existing trend.
: 23.6%, 38.2%, 50% (psychological, not a true ratio), 61.8%, and 78.6%. Fibonacci Trading
Fibonacci trading is a method of technical analysis that uses mathematical ratios—most notably the —to identify potential support and resistance levels in financial markets. While widely used, its effectiveness is a subject of debate among traders, often seen as either a powerful psychological tool or a case of "voodoo science" and confirmation bias. Core Tools & Ratios : Used to identify potential pullback levels within
Traders on Investopedia and TrendSpider emphasize that Fibonacci levels are not guaranteed reversal points but zones of interest. While widely used, its effectiveness is a subject
: Used to project future price targets beyond a completed move. Common Targets : 127.2%, 161.8%, and 261.8%. Strategic Review: Pros & Cons