<\/p>\n
In\u00a0finance,\u00a0Fibonacci retracements<\/strong> is a method of\u00a0technical analysis for determining\u00a0support and resistance levels. They are named after their use of the\u00a0Fibonacci sequence. Fibonacci retracement is based on the idea that markets will retrace a predictable portion of a move, after which they will continue to move in the original direction.<\/p>\n Fibonacci retracement is created by taking two extreme points on a chart and dividing the vertical distance by the key Fibonacci ratios. 0.0% is considered to be the start of the retracement, while 100.0% is a complete reversal to the original part of the move. Once these levels are identified, horizontal lines are drawn and used to identify possible\u00a0support and resistance levels.<\/p>\n <\/a><\/p>\n <\/p>\n Fibonacci ratios are mathematical relationships, expressed as ratios, derived from the\u00a0Fibonacci sequence. The key Fibonacci ratios are 0%, 23.6%, 38.2%, and 100%.<\/p>\n <\/a><\/p>\n <\/p>\n <\/p>\n The key Fibonacci ratio of 0.618 is derived by dividing any number in the\u00a0sequence by the number that immediately follows it.\u00a0For example: 8\/13 is approximately 0.6154, and 55\/89 is approximately 0.6180.<\/em><\/p>\n <\/a><\/p>\n <\/p>\n <\/p>\n The 0.382 ratio is found by dividing any number in the\u00a0sequence by the number that is found two places to the right.\u00a0For example: 34\/89 is approximately 0.3820.<\/em><\/p>\n <\/a><\/p>\n <\/p>\n <\/p>\n The 0.236 ratio is found by dividing any number in the\u00a0sequence by the number that is three places to the right.\u00a0For example: 55\/233 is approximately 0.2361.<\/em><\/p>\n <\/a><\/p>\n <\/p>\n <\/p>\n The 0 ratio is\u00a0:<\/p>\n <\/a><\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Fibonacci Retracement In\u00a0finance,\u00a0Fibonacci retracements is a method of\u00a0technical analysis for determining\u00a0support and resistance levels. They are named after their use of the\u00a0Fibonacci sequence. Fibonacci retracement is based on the idea that markets will retrace a predictable portion of a move, after which they will continue to move in the original direction. Fibonacci retracement is created […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":2,"menu_order":4,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_mi_skip_tracking":false},"yoast_head":"\nFibonacci retracement levels shown on the USD\/CAD\u00a0currency pair. In this case, price retraced approximately 38.2% of a move down before continuing.<\/h6>\n
Fibonacci ratios<\/span><\/h2>\n
Continue to Lesson 5<\/a><\/h2>\n