Fibonacci Retracement

Fibonacci retracement plots horizontal lines at key ratios (commonly 23.6%, 38.2%, 50%, 61.8%, and 78.6%) between a chosen high and low, marking levels where a price pullback might find support or resistance before resuming the prior trend. The 61.8% level in particular is widely watched as a common "deep" pullback zone. Fibonacci levels work as self-fulfilling reference points partly because so many traders watch the same ratios — but they're not a guarantee, and price frequently passes through them without reacting at all.