Trading strategies · Intermediate

Fibonacci Retracement Trading

A 1-minute lesson from the MarketPro academy, one of 24 in trading strategies.

Last reviewed by the MarketPro research desk · Editorial policy

Short answer

Fibonacci retracement tools plot horizontal levels — commonly 23.6%, 38.2%, 50%, 61.8%, and 78.6% — between a recent swing high and swing low, based on ratios derived from the Fibonacci number sequence. Traders use these levels to estimate where a pullback within a larger trend might pause or reverse.

Fibonacci retracement tools plot horizontal levels — commonly 23.6%, 38.2%, 50%, 61.8%, and 78.6% — between a recent swing high and swing low, based on ratios derived from the Fibonacci number sequence. Traders use these levels to estimate where a pullback within a larger trend might pause or reverse.

How It Is Typically Used

  • Drawing the tool from a significant swing low to swing high (or vice versa) to generate retracement levels
  • Watching for price to react — pause, consolidate, or reverse — near one of these levels during a pullback
  • Combining a retracement level with other confirmation, such as a candlestick pattern or a prior support/resistance zone at the same price

Finish this lesson in the MarketPro app

3 more sections of Fibonacci Retracement Trading, plus all 320 lessons, the quizzes that check each one landed, and the streak that keeps you coming back. All of it is free on any account, including a free one. There is no paywall inside the academy.

Scan with your phone camera to install MarketPro and open this lesson.

Download on theApp Store Get it onGoogle Play

Free account, no card. The academy has no paywall inside the app.

Not investment advice. Past performance is not indicative of future results.

Lesson 8 of 24 in Trading strategies

PreviousTrading With Bollinger Bands NextTrading Key Candlestick Patterns

Run the numbers while this is fresh

The arithmetic in this category has a free calculator on this site, no sign-up and nothing leaves your browser: Position size calculator, Profit & loss calculator, Compounding calculator.

Written and reviewed by the MarketPro research desk

MarketPro is a trading-signal and trading-education app operated by Harajuku Holdings LTD (Cyprus). Our signal desk publishes and tracks every trade idea in-app, and every page here is checked against the app's live behaviour before publishing. Last reviewed . How we produce signals and content · About MarketPro

Trade · Learn · Earn

The whole academy is free in the app

All 320 lessons, 12 guided paths, quizzes and a daily streak. Free on every account, with vetted free signals alongside it.

Download on theApp Store Get it onGoogle Play

Not investment advice. Past performance is not indicative of future results.