## What is Fibonacci Retracement? Understanding this Technical Analysis Tool
**Basic Concept of Fibonacci Retracement**
Fibonacci Retracement is a powerful technical analysis tool used by traders to forecast potential reversal points on a chart. Retracement in the context of financial trading refers to the price pulling back (retrace) a certain portion from a previous trend before continuing in the original direction. This tool is based on the Fibonacci sequence, a mathematical series that appears frequently in nature, and is applied to identify standard retracement levels: 23.6%, 38.2%, 50%,
View Original**Basic Concept of Fibonacci Retracement**
Fibonacci Retracement is a powerful technical analysis tool used by traders to forecast potential reversal points on a chart. Retracement in the context of financial trading refers to the price pulling back (retrace) a certain portion from a previous trend before continuing in the original direction. This tool is based on the Fibonacci sequence, a mathematical series that appears frequently in nature, and is applied to identify standard retracement levels: 23.6%, 38.2%, 50%,