Fibonacci Retracement (ฟีโบนัชชี รีเทรซเมนต์)
A chart tool that marks possible pullback areas, usually at 38.2%, 50% and 61.8% of a recent price move, using horizontal lines.
Fibonacci Retracement is a drawing tool on a price chart. After a clear move up or down, price often pulls back part of the way before moving again. The tool draws horizontal lines at set percentages of that move, so traders can see areas where a pullback might pause.
The most common levels are 38.2%, 50% and 61.8%. The 38.2% and 61.8% ratios come from the Fibonacci number sequence. The 50% level is not a true Fibonacci ratio, but it is included by convention. Many platforms also show 23.6% and 78.6%.
Simple example
A stock rises from 100 (swing low) to 200 (swing high). The move is 100 points. The pullback levels are:
- 38.2% level: 200 − 38.2 = 161.8
- 50% level: 200 − 50 = 150
- 61.8% level: 200 − 61.8 = 138.2
To draw it, you click the swing low and drag to the swing high. The platform then places the lines for you.
Why it matters, and a common mistake
The levels give beginners a clear map of where to watch price. A common mistake is treating them as guaranteed turning points. Price can pass straight through any level. Another mistake is picking an unclear swing high or low, which gives unreliable lines. These levels are best used as reference areas, together with other tools such as trend, support and resistance, and risk control like a Stop Loss.