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Fibonacci retracements use mathematical ratios (23.6%, 38.2%, 50%, 61.8%, 78.6%) to identify potential support and resistance levels.
Excellent for finding pullback entry zones and profit targets.
Price reaches a retracement level (38.2% or 61.8%) + Bullish trend confirmation
Price reaches an extension (127.2% or 161.8%) + Reversal signs
The 61.8% level is the strongest for reversals
Fibonacci in Downtrend
Shallow retracement - Very strong trend
Classic bounce zone
Powerful psychological level
THE GOLDEN RATIO - The most reliable!
Last support before reversal
Back to origin - Conservative TP
Moderate extension - Balanced TP1
GOLDEN TARGET - Optimal TP2, most likely!
Strong extension - Ambitious TP3
Extreme extension - TP4 MOONSHOT in strong trend!
Buy Signal : Wait for 61.8% + Candle confirmation + Volume
Sell Signal : TP at 100% or 127.2% extension
For patient traders. The 61.8% level is statistically the most reliable. ~70% success rate.
Buy Signal : Entry between 38.2% and 50% with confirmation
Sell Signal : Scaled TP: 50% at 100%, 50% at 161.8%
Good balance between opportunity and safety. Use multiple levels to average your entry.
Buy Signal : Enter early at 23.6% or 38.2% without waiting
Sell Signal : Ambitious TP: 161.8% or 200% extension
For scalpers and day traders. More opportunities but requires strict risk management. Tight stop mandatory!
Draw MULTIPLE Fibonacci retracements on different swings. When 2-3 levels overlap = GOLDEN ZONE! Bounce probability >80%. This is THE pro technique.
After a retracement, use Fibonacci extensions for your Take Profits: 127.2% (conservative TP1), 161.8% (balanced TP2), 200% (ambitious TP3), 261.8% (moonshot TP4). Always scale out!
The jackpot: Fibonacci level + historical S/R + EMA 200 overlapping = GOLDEN Signal! Wait for these confluences for very high probability trades.
Draw Fib on 1H for precise entry, on 4H for general zone, on 1D to confirm major trend. If all 3 timeframes show bounce at same level = PERFECT TRADE!
Fibonacci ONLY works on clear and significant swings. Minimum 5-10% movement. On noise = random results!
NEVER blind entry! ALWAYS wait for confirmation: reversal candle, RSI divergence, or level rejection. Fibonacci = zone, not exact trigger.
Many only use retracements. HUGE MISTAKE! Fibonacci extensions (127%, 161%, 200%) are your best friends for Take Profits. Don't leave money on the table!
The CLASSIC combo. Price hits 61.8% Fib + RSI oversold = Almost guaranteed bounce. ~75% reliability. Add hammer candle = 85% success!
When 50% Fib retracement coincides with EMA 200 = MAGNETIC ZONE! Price systematically returns there. Institutions' favorite setup. High conviction trade!
Shallow 38.2% retracement + Buyer volume explosion = ULTRA strong trend resuming. Enter fast, it's taking off! Target: 161.8% minimum.
61.8% IS THE MOST POWERFUL LEVEL. If price breaks below 61.8%, trend is probably over. If price bounces on 61.8% = Green Light to continue trend. It's BINARY. Respect 61.8% like your life depends on it!
Trend confirmed - ALL IN!
Trend over - GET OUT!
