# 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.

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.

## Fibonacci Retracements calculator

 B 23.6% 38.2% 50.0% 61.8% 78.6% A 138.2% 161.8%
 161.8% 138.2% A 78.6% 61.8% 50.0% 38.2% 23.6% B