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Fibonacci retracements & extensions

Beginner·10 min read·Premium lesson

Fibonacci retracements measure how far a pullback has gone as a percentage of the previous move. The levels 38.2%, 50%, 61.8% and 78.6% often act as support or resistance. Extensions (127%, 161.8%) are used as profit targets.

The full lesson covers drawing them correctly (most people do it backwards), the "golden pocket", and confluence.

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