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Fibonacci Retracements: Levels and How to Use Them | Borearis
Fibonacci retracements divide a swing into ratios: 23.6%, 38.2%, 50%, 61.8% and 78.6%.
How to draw
Pick a clear swing low and high, then draw from one to the other in the direction of the trend. The tool does the arithmetic.
How to use
Treat each level as a zone where a pullback may pause. Combine it with a level or a candle reaction; a ratio alone is not a signal.
Common mistake
Redrawing the swing until a level fits the trade. Mark it once and keep it.
Use the Fibonacci calculator for the numbers, and the position size calculator for the risk.
Which ratios matter most?
61.8% and 50% are watched most, but the reaction matters more than the ratio.
Do I draw high to low or low to high?
Draw in the direction of the trend you are trading.
Educational content only, not investment advice.