What Is a Fibonacci Retracement?

The Fibonacci retracement theory is one of the classic theories that is often found on stocks, and is a trend line established between two endpoints.

Fibonacci retracement theory

The Fibonacci retracement theory is one of the classic theories that is often found on stocks, and is a trend line established between two endpoints.
Chinese name
Fibonacci retracement theory
Foreign name
Fibonacci retracement theory
Types of
Academic theory
Use
stock
discoverer
Leonardo Fibonacci
Fibonacci retracement theory is
For example, the two end points are drawn from the lowest point to the highest point. Then draw 9 horizontal lines with Fibonacci levels: 0.0%, 23.6%,
Fibonacci retracement
38.2%, 50%, 61.8%, 100%, 161.8%, 261.8%, and 423.6% cross the trend line. When there are major increases or decreases online, prices often return to their previous levels to correct some basic (sometimes all) of their initial dynamics. In such an interaction, Fibonacci retracement prices are often at the same level as, or near, the support / resistance points.
Improving your moving average with a Fibonacci retracement is very helpful to your judgment: When the stock price falls, if the 23.6 line cannot support it, don't rush to make up, because it seeks down to the next line That is, the probability of the 38.2 line is great. If you need to make up, you have to wait until the 23.6 line has support, otherwise it should be more appropriate to enter the market near the 38.2 line.
But if the 38.2 line cannot support it then wait for the next line, and so on.
Conversely, when rebounding, if you can break the upper line, you can look high (usually there is a withdrawal confirmation process). If you ca nt break it, turn around and sell. [2]

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