Fibonacci Sequence
Mathematical sequence used to identify key zones on charts.
Beginner-friendly explanation
The Fibonacci sequence is a series of numbers (0, 1, 1, 2, 3, 5, 8…) where each number is the sum of the two before. It’s used in trading to spot levels where price may react.
Example: After a strong rise, price often pulls back around 61.8% or 38.2% levels.
Intermediate-level insight
Fibonacci retracements (23.6%, 38.2%, 50%, 61.8%, 78.6%) are drawn between a low and a high to detect supports or resistances. They help plan entries, stops, and targets.
Example: A BTC pullback stops at 61.8% of the previous move, reinforcing that level as support.
Advanced perspective
Fibonacci extensions (127%, 161.8%, etc.) help project trend targets. Combined with other tools (harmonics, Elliott Wave), they build advanced scenarios.
Example: An impulse wave ends exactly at 161.8% extension of the previous wave, validating the Elliott projection.
Technical Analysis & Charting
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