Summary of Fibonacci Levels

Summary of Fibonacci Levels
The Fibonacci retracement levels are: 0.236, 0.382, 0.500, 0.618, 0.764.

Traders use levels of Fibonacci backs as levels of support and resistance. As many traders observe these same levels and place buy and sell orders on them to open trades or place stops, these supports and resistances almost always meet expectations.

Fibonacci extension levels are: 0, 0.382, 0.618, 1,000, 1.382, 1.618

Operators use Fibonacci extension levels as levels to take profits. Again, since many traders are observing these same levels and placing buy or sell orders for profit, this tool generally works as expected.

In order to apply Fibonacci levels in the graphs, high and low oscillation points must be identified.

A high oscillation point is a Japanese sail with at least two lower peaks, both on its right and on its left.

A low oscillation point is a Japanese sail with at least two higher peaks to its left and to its right.

 

NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.