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Investment
Fibonacci Retracement
Horizontal lines drawn on a chart at key ratios (23.6%, 38.2%, 61.8%) to predict possible support and resistance levels.
Fibonacci retracements are based on the famous Fibonacci sequence found throughout nature. They work surprisingly well in trending markets and are used by traders all over the world for both stocks and crypto.
It's using nature's favourite numbers to guess where the price might pause or reverse.
Real world: After a strong rally, traders draw Fibonacci lines. Price often bounces exactly at the 61.8% retracement level, which many big institutions also watch.
💡 Fibonacci levels are self-fulfilling because so many traders watch and respect them.