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Fibonacci Retracement

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Description

A technical analysis tool based on the idea that markets retrace a predictable portion of a move.

Fibonacci retracement is a popular tool in technical analysis, predicated on the theory that markets will retrace a predictable portion of a move before continuing in the original direction. Traders use these levels, derived from Fibonacci numbers, to identify potential reversal points for support or resistance. It’s widely used in forex, stocks, and commodities trading to inform entry and exit strategies.

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