Patterns › Fibonacci bounce up vs Fibonacci bounce down
Look-alikes
Fibonacci bounce up vs Fibonacci bounce down
They look alike, so beginners mix them up. Here is what each one means, and how often each one worked on real charts.
Fibonacci bounce up
After a big rise, price pulled back to the 50 to 61.8% zone and bounced.
After a big rise from a swing low to a swing high, traders measure how far price pulls back. The 50% level is halfway back down the rise, and the 61.8% level is a little deeper. The 61.8% number comes from the golden ratio, a famous number in math, while 50% is simply the halfway mark. A bounce from this zone hints the rise may continue, but it is only a clue.
Drawing Fibonacci levels on a tiny move, when they are meant for a big, clear swing.
Fibonacci bounce down
After a big fall, price rallied back to the 50 to 61.8% zone and turned down.
After a big fall from a swing high to a swing low, traders measure how far price climbs back. The 50% level is halfway back up the fall, and the 61.8% level is a little higher. When a rally stalls in this zone and a red candle closes at or below 61.8%, it hints the fall may continue. It is only a clue, because price can keep climbing through the zone.
Drawing Fibonacci levels on a tiny move, when they are meant for a big, clear swing.
Real odds side by side
| Pattern | Found | Target first | Stop first | Went nowhere |
|---|---|---|---|---|
| Fibonacci bounce up | 16,357 | 35% | 58% | 8% |
| Fibonacci bounce down | 17,936 | 35% | 57% | 8% |
Counted by the Trading Class research engine on real past candles: entry at the signal candle's close, target 1.5 × ATR(14), stop 1 × ATR(14), 12 candles to decide, a candle that touches both counts as the stop. How we count. Past data, not a forecast and not advice.