Based on the Fibonacci sequence, a series of continuously growing numbers where each number is equal to the sum of the two numbers before it, Fibonacci retracement levels are horizontal lines that show where support and resistance are expected to occur. A percentage is connected to each level. How much of a previous move the price has retraced is shown by the percentage. There are four Fibonacci levels for retracement: 23.6%, 38.2%, 50%, 61.8%, and 78.6%. The 50% Fibonacci ratio, 50% is one of the most commonly utilized ratios. The indication can be drawn between any two important price points, such as a high and a low, making it handy. The levels between those two spots will subsequently be created by the indicator.
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