Fibonacci Retracement is a method of technical analysis for determining support and resistance levels. It is named after the use of the Fibonacci sequence series. It is also based on the idea that markets will retrace a predictable portion of a move, after which they will continue to move in the original direction.
Fibonacci Ratio
The Fibonacci retracement levels are 23.6%, 38.2%, 61.8%, and 78.6%. While not officially a Fibonacci ratio, 50% is also used.
How to draw Fibonacci retracement in an uptrend
we need to connect any to point typically high and low points
The percentage level provided is the level where the price could reverse.
Example: Banknifty chart
Chart : Tradingview
We can see we have connected two points, Low from Jan end and high point from Feb.
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