Fibonacci patterns trading is a technical approach that uses the mathematical ratios found in the Fibonacci sequence to map potential market turning...

Fibonacci patterns trading is a technical approach that uses the mathematical ratios found in the Fibonacci sequence to map potential market turning points. Traders apply Fibonacci retracements to spot likely pullback zones after a move, and Fibonacci extensions to project logical profit targets as trends continue. By anchoring these levels to recent swings, you can create a consistent, rules-based framework for planning entries, exits, and risk management across stocks, forex, crypto, and futures. The power of Fibonacci lies in confluence: when price, trendlines, moving averages, and support/resistance cluster near the same ratio, probabilities may improve. This page explains how to select swing points, plot 38.2%, 50%, and 61.8% retracements, combine 127.2% and 161.8% extensions with structure, and avoid common mistakes like forcing levels or overfitting. Whether you day trade momentum or swing trade breakouts, understanding Fibonacci patterns can help you define your edge, stay disciplined, and act with clarity. Educational content only - no guarantees - just practical, testable methods you can adapt to your plan.

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