Fibonacci
Fibonacci retracement is a popular technical analysis tool based on key ratios derived from the Fibonacci sequence β most notably 23.6%, 38.2%, 50%, 61.8%, and 78.6%. Traders use these levels to identify potential areas of support and resistance where price may pause or reverse during a correction within a larger trend. Named after 13th-century Italian mathematician Leonardo Fibonacci, these ratios appear in many aspects of nature and financial markets. Fibonacci tools are widely applied in forex to plan entry points, stop-loss levels, and profit targets with greater structural precision.