Glossary - ChicksX

Fibonacci Retracement is a technical analysis tool used to identify potential support and resistance levels in an asset's price.

Fibonacci Retracement is a tool in technical analysis that helps traders identify potential reversal levels in a financial asset's price. It is based on the Fibonacci sequence, where key levels are derived from ratios such as 23.6%, 38.2%, 50%, 61.8%, and 100%. Traders use these levels to predict where an asset's price might pull back or bounce after a significant move. By plotting these levels on a price chart, traders can better anticipate potential support and resistance zones. This tool is widely used in both crypto and traditional financial markets for strategic decision-making.