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--- chart_analysis:fibonacci_retracemen [2019/09/07 00:03]
betseyp
+++ chart_analysis:fibonacci_retracemen [2023/07/21 20:43]
jayanthi [Introduction]
@@ Line 1: / Line 1: @@
 ====== Fibonacci Retracements ======
-===== Introduction =====
+===== What Are Fibonacci Retracement Levels? =====
-Fibonacci Retracements are ratios used to identify potential reversal levels. These ratios are found in the Fibonacci sequence. The most popular Fibonacci Retracements are 61.8% and 38.2%. Note that 38.2% is often rounded to 38% and 61.8 is rounded to 62%. After an advance, chartists apply Fibonacci ratios to define retracement levels and forecast the extent of a correction or pullback. Fibonacci Retracements can also be applied after a decline to forecast the length of a counter-trend bounce. These retracements can be combined with other indicators and [[:chart_analysis:chart_patterns|price patterns]] to create an overall strategy.
+Fibonacci retracement levels are based on ratios used to identify potential reversal points on a price chart. These ratios are found in the Fibonacci sequence. The most popular Fibonacci retracements are 61.8% and 38.2%. Note that 38.2% is often rounded to 38%, and 61.8 is rounded to 62%. After an advance, chartists apply Fibonacci ratios to define retracement levels and forecast the extent of a correction or pullback. Fibonacci retracement levels can also be applied after a decline to forecast the length of a counter-trend bounce. These retracements can be combined with other indicators and [[:chart_analysis:chart_patterns|price patterns]] to create an overall strategy.
 ===== The Sequence and Ratios =====