8. Fibonacci Retracement Method

 

 

What is Fibonacci Retracement?

 

It is an array of numbers created by Italian mathematician Fibonacci, which is a kind of golden ratio concept.

 

 

cf. Fibonacci Retracement [Related]

 

 

 

The Fibonacci retracement arrangement we usually see is

 

38.2% / 50% / 61.8%

 

 

You can remember about 3 of these

 

 

 

 

This Fibonacci retracement is used to predict a rebound or correction period.

 

 

 

 

If you look at the image above, if you see the lowest low of the candle as 0, the highest as 1, and plot this with the Fibonacci scale,

 

Rebound to 38.2% and correction at 38.2%

 

Fibonacci retracement trading method

 

Buying Timing: When the rebound starts

Selling Timing: When the correction begins

 

Easy, right?

 

 

Look at the image below and think in your head to understand.

 

 

 

 

◆ Adjust after rebounding to 0.382 section

 

 

 

 

◆ After about 0.5 section, it rises again

 

 

 

 

 

◆ 0.618 section resistance

 

 

 

 

 

◆ Act as a support line after breaking through each section

 

 

 

 

 

 

Summary

 

A retracement (rebound or correction) may come in the 38.2% / 61.8% ratio range.

 

 

Buy when the rebound starts and sell when the correction starts.