Fibonacci trading

After a strong move, price often retraces to a Fibonacci level before continuing. The key levels: 38.2%, 50%, 61.8% (retracements) and 127.2%, 161.8% (extensions for targets).

How to use it: in an uptrend, draw the Fib from swing low to swing high. Look for buyers to step in around the 61.8% "golden pocket." Combine with support/structure for confluence — never trade a Fib level alone.