How it works (short):

  • You take a move from low → high (or high → low)

  • Draw Fibonacci levels between them

  • Key levels: 23.6%, 38.2%, 50%, 61.8%, 78.6%

What it means:

  • Price often retraces (pulls back) to these levels

  • Then it may bounce and continue the trend

Example:

  • Price goes from $100 → $200

  • It might drop to around $161 (61.8%) and bounce up again

👉 Used to find:

  • Entry points

  • Stop-loss levels

  • Trend continuation zones