Fibonacci trading is a method of technical analysis that uses mathematical ratios—most notably the —to identify potential support and resistance levels in financial markets. While widely used, its effectiveness is a subject of debate among traders, often seen as either a powerful psychological tool or a case of "voodoo science" and confirmation bias. Core Tools & Ratios
: Used to identify potential pullback levels within an existing trend.
: Used to project future price targets beyond a completed move. Common Targets : 127.2%, 161.8%, and 261.8%. Strategic Review: Pros & Cons
: 23.6%, 38.2%, 50% (psychological, not a true ratio), 61.8%, and 78.6%.
Fibonacci trading is a method of technical analysis that uses mathematical ratios—most notably the —to identify potential support and resistance levels in financial markets. While widely used, its effectiveness is a subject of debate among traders, often seen as either a powerful psychological tool or a case of "voodoo science" and confirmation bias. Core Tools & Ratios
: Used to identify potential pullback levels within an existing trend. Fibonacci Trading
: Used to project future price targets beyond a completed move. Common Targets : 127.2%, 161.8%, and 261.8%. Strategic Review: Pros & Cons Fibonacci trading is a method of technical analysis
: 23.6%, 38.2%, 50% (psychological, not a true ratio), 61.8%, and 78.6%. not a true ratio)