Fibonacci Retracement is a powerful technical analysis tool that helps identify potential support and resistance levels during price corrections. These levels are based on key ratios derived from the Fibonacci sequence.
Fine-tune placement using the Coordinates properties:
Price 1: Set exact position of first point (bar number and price)
Price 2: Set exact position of second point (bar number and price)
Pro Tip: Former resistance levels often become support levels after breakouts. Pay special attention to how price reacts at the 38.2% and 61.8% retracement levels, as these often provide strong support/resistance.
Fibonacci Extension helps identify potential price targets beyond the original trend. It’s particularly useful for setting profit targets and identifying possible reversal zones after a retracement has completed.