Fibonacci guide
Fibonacci Retracement: Reading Pullback Zones in Up and Down Swings
A retracement is a way to observe price moving back toward a prior range after a move. A ratio does not promise a reversal; consider structure and volatility with it.
Start with the swing
For an upswing, first identify the move from low to high; for a downswing, identify the move from high to low. The range is more useful when it represents a meaningful swing rather than short-lived noise.
Treat levels as zones
The 23.6%, 38.2%, 50.0%, 61.8%, and 78.6% levels can be viewed as volatility-aware observation zones, not single-price commands. Reaching a zone alone does not confirm support or resistance.
Check the surrounding context
Review recent swing structure, candle closes, direction across timeframes, and market conditions. This is not a buy or sell instruction, and volatile markets can move through a reference zone quickly.