Forex glossary

Fibonacci Retracement

Fibonacci retracement is a technical-analysis tool that draws horizontal levels between a swing low and a swing high to mark where price may pull back before the trend resumes. The key levels are 23.6%, 38.2%, 50%, 61.8% and 78.6%, with 61.8% (the golden ratio) treated as the most significant support or resistance zone.

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