Fibonacci

Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician Leonardo Fibonacci in the thirteenth century. However, Fibonacci's sequence of numbers is not as important as the mathematical relationships, expressed as ratios, between the numbers in the series.

In technical analysis, Fibonacci retracement is created by taking 2 extreme points and it’s drawn in an uptrend from higher high to lower low and in a downtrend from lower low to higher high

 Blue lines = connecting from lower lows to the next higher high (down to up) [uptrend]

Purple lines= connecting higher high to lower lows (Up to down)[downtrend]

Green lines= Drawing fibo on a bigger scale (overall higher high to next overall Lower Low. (which some people also likle to do)

                       

Fibonacci ratios are 23.6%, 38.2%, 50%, 61.8% and 100%. Once these levels are identified, horizontal lines are drawn and used to identify possible support and resistance levels ( to see the past SnR in the left and see if they are

tested many times or if the candle break them and it will re-test them )

The best ratios of reversal are 23.6%, 50%, 61.8% And 161.8% The last 2 are known as the golden Jackpot if you catch a reversal there it will be a sure shot