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.

Related Charts Terms

Double Bottom

A "W" shaped pattern that signals a potential reversal upward

Gap Up / Gap Down

When a stock opens much higher or lower than it closed

Golden Cross

A bullish signal when a short-term average crosses above a long-term one

Head and Shoulders

A chart pattern that often signals a trend reversal

View all Charts terms →

Learn Investing Like a Game

Bite-sized lessons, a $100K practice portfolio, and Mr. Guy to explain anything in plain English.

Create Free Account

Free forever. No credit card needed.