Investing Dictionary
Charts

What is Fibonacci Retracement?

Key price levels where a stock might pause or reverse

Full Explanation

Based on the Fibonacci sequence, traders use levels like 23.6%, 38.2%, 50%, and 61.8% to predict where a stock might find support or resistance after a big move.

Pro Tip

The 61.8% level (the "golden ratio") is watched most closely by technical traders.

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