Fibonacci Retracements identify key price levels where a trend is likely to retrace before continuing. The three levels (38.2%, 50%, 61.8%) are derived from the golden ratio and Fibonacci sequence.
Parameters (38.2/50/61.8%)
X-Axis: Time (retracement detection dates)
Y-Axis: Price levels (auto-scaled)
38.2%: Shallow retracement (solid, highest)
50.0%: Half retracement (dotted, middle)
61.8%: Golden ratio level (dashed, lowest)
Interpretation
38.2% Bounce: Strong trend — shallow pullback
50% is a psychological level — common reversal
61.8% Hold: The "golden pocket" — deepest healthy retrace
61.8% Break: Often signals trend reversal
Trading Signals
Bounce from 38.2% = strong trend continuation
Bounce from 50% = normal retracement, trend intact
Bounce from 61.8% = deep retracement — last line of defense
Close below 61.8% = potential trend reversal
Price Overlay
Close Price: Actual closing price (same Y-axis, dashed violet)
Price bouncing at 38.2% = shallow pullback, strong trend