Fibonacci retracement levels aid in determining entry points from "summary" of Charting and Technical Analysis by Fred McAllen
Fibonacci retracement levels are widely used in technical analysis by traders and investors to identify potential entry points for trades. These levels are based on the Fibonacci sequence, a series of numbers where each number is the sum of the two preceding ones. The key levels that traders focus on are 23.6%, 38.2%, 50%, 61.8%, and 100%. These levels are drawn on a price chart to highlight potential areas of support or resistance. When a security is experiencing a pullback or a retracement, traders often look to Fibonacci levels to determine where the price may find support and potentially re...
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