Fibonacci retracement
E569773
Fibonacci retracement is a technical analysis tool that uses key Fibonacci ratios to identify potential support and resistance levels where price corrections may pause or reverse.
Statements (49)
| Predicate | Object |
|---|---|
| instanceOf |
charting technique
ⓘ
technical analysis tool ⓘ |
| appliedTo |
downtrends
ⓘ
price charts ⓘ uptrends ⓘ |
| assumes | markets retrace a predictable portion of a move ⓘ |
| basedOn |
Fibonacci ratios
ⓘ
Fibonacci sequence NERFINISHED ⓘ |
| category | Fibonacci tools ⓘ |
| combinedWith |
candlestick patterns
ⓘ
momentum indicators ⓘ moving averages ⓘ trendlines ⓘ |
| drawnFrom |
significant swing high
ⓘ
significant swing low ⓘ |
| drawnTo |
significant swing high
ⓘ
significant swing low ⓘ |
| hasKeyRatio |
0.236
ⓘ
0.382 ⓘ 0.5 ⓘ 0.618 ⓘ 0.786 ⓘ |
| hasLimitation |
does not guarantee reversals
ⓘ
subjective selection of swing points ⓘ |
| identifies |
potential price correction zones
ⓘ
potential resistance levels ⓘ potential reversal zones ⓘ potential support levels ⓘ |
| purpose |
identify entry levels
ⓘ
identify exit levels ⓘ set profit targets ⓘ set stop-loss levels ⓘ |
| relatedTo |
Fibonacci arc
ⓘ
Fibonacci extension NERFINISHED ⓘ Fibonacci fan ⓘ |
| usedBy |
investors
ⓘ
technical analysts ⓘ traders ⓘ |
| usedIn |
cryptocurrency trading
ⓘ
financial markets ⓘ forex trading ⓘ futures trading ⓘ stock trading ⓘ |
| usesRatio |
23.6%
ⓘ
38.2% ⓘ 50% ⓘ 61.8% ⓘ 78.6% ⓘ |
| visualizedAs | horizontal lines ⓘ |
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.