Glossary › Fibonacci retracement

Trading glossary · indicators

Fibonacci retracement

Lines drawn at special in-between points of a big move, where a pullback often pauses or turns.

The fuller meaning

Horizontal levels that divide a swing, low to high or high to low, at 23.6%, 38.2%, 50%, 61.8% and 78.6%; the 50% level is not a Fibonacci ratio but many traders watch it. They mark possible pullback zones, not walls, and are meant for big, clear swings rather than tiny moves.

Fibonacci retracement, also called Fibonacci, Fibonacci level.

Related words

61.8% level · ATR · ATR expansion · bearish divergence · Bollinger Bands · bullish divergence · crossover · %D · death cross · divergence