Fibonacci Retracements
This graphic indicator is useful for establishing support and resistance zones within a defined period (with the help of two points).
After a significant movement (upward or downward), prices will often bounce and retrace a portion of their original movement close to the Fibonacci retracement levels.
Fibonacci retracements are displayed by drawing a tendency line between two extreme points. A series of horizontal lines will then appear (0.0%, 23.6%, 38.2%, 50.0%, 61.8%, 100%, 138.2%, 161.8%) which represent the percentage of corrections that you can look out for.
Example of a trade
1) After the rebound has been confirmed:
- A long position is taken at 204.50
- Stop loss at 204.10 below the 61.8% support level
2) At the 38.2% support level
- Locking in of profits by moving the stop level up to 204.60
- Afterwards, let your gains run up
- Or take in your profits at the 38.2% or 23.6% support levels
- In my case, I took my profits at 205.40, a nice 90 pip gain 
The 50% retracement is the one that is most commonly used.
