Fibonacci Retracement

Fibonacci retracement is a technical analysis tool that uses horizontal lines to indicate potential support and resistance levels based on Fibonacci ratios — most commonly 23.6%, 38.2%, 50%, and 61.8%. These levels are derived from the Fibonacci sequence and are used by traders to identify potential reversal points after a price move. Fibonacci retracement is one of the most widely used tools in retail technical analysis — which also makes it vulnerable to overcrowding and false signals when too many participants react to the same levels simultaneously. One-Signal excludes Fibonacci and all other technical indicators from its signal generation, relying instead on sentiment indicators to identify market extremes driven by investor psychology rather than price chart patterns.

View our methodology: one-signal.com/performance. Not financial advice.

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