Fibonacci retracement — Trading Glossary

A tool drawn from the swing low to the swing high of a move (or high to low) that marks how far a pullback has gone back, as a fraction of the move — 0.382, 0.5, 0.618, 0.786 and so on.

The levels are a planning aid, not a forecast: they give a consistent place to look for a pullback to end. Their usefulness comes partly from how many traders watch the same levels.

Also called: fib, fibonacci, fib retracement, fibonacci levels.

Taught in

The Fibonacci Golden Zone (Honest Version)Strategy Playbook

How to draw the 0.618–0.79 zone, why it is a zone and not a prediction, the confirmation to wait for, the risk math, and when to walk away.

Also covered in that lesson

Golden zoneThe band between the 0.618 and 0.79 Fibonacci retracement levels, where a pullback inside a trend commonly pauses. A zone covering about 17% of the move, not an exact turning point.Fair value gapA three-candle pattern left by a fast move, where the first candle's high and the third candle's low (in a rally) do not overlap. The empty range between them is the gap.

Related terms

Golden zone Swing low Swing high Zone