Learn the principles and practical applications of Fibonacci retracement levels at 0.236, 0.382, 0.5, 0.618, and 0.786.
Fibonacci retracement is a technical analysis tool based on the Fibonacci sequence, used to predict potential pullback levels within a trend. Key levels include 23.6%, 38.2%, 50%, 61.8%, and 78.6%.
A shallow retracement, typically seen in strong trends. If price bounces here, the trend is very strong.
A moderate retracement and one of the most common pullback depths. In healthy uptrends, price frequently finds support here.
Not a strict Fibonacci ratio, but the 50% level is highly effective in practice and closely watched by traders.
The golden ratio — the most important Fibonacci level. If price holds here, the overall trend is typically still intact.
A deep retracement. If price pulls back beyond this level, the original trend may be broken.
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