Definition of Fibonacci Retracement
A technical tool based on the Fibonacci sequence that identifies potential support and resistance levels. Key retracement levels are 23.6%, 38.2%, 50%, 61.8%, and 78.6%. Traders use these to predict where pullbacks may end.
At a glance
Term
Fibonacci Retracement
URL slug
fibonacci-retracement
Category
Analysis
Short answer
A technical tool based on the Fibonacci sequence that identifies potential support and resistance levels.
Deep dives
Full A–Z glossary
Example
Apply the definition: restate “Fibonacci Retracement” in one sentence tied to your next trade (symbol, direction, size, stop). If you cannot, re-read the definition above.
Common mistake
Common mistake: using “Fibonacci Retracement” as loose slang while your broker/platform specification defines it more narrowly.
Professional tip
Tip: bookmark this “Fibonacci Retracement” page and reopen it when reading broker specs so definitions stay consistent.
Practice tools:
Related terms
FAQ
A technical tool based on the Fibonacci sequence that identifies potential support and resistance levels.
Knowing the precise definition of “Fibonacci Retracement” prevents platform and broker-spec mistakes—a common source of size and cost errors.
Common mistake: using “Fibonacci Retracement” as loose slang while your broker/platform specification defines it more narrowly.