Fibonacci retracements
Where pullbacks tend to stop: the 38.2%, 50% and 61.8% levels and how to draw them.
After a strong move, price usually pulls back part of the way before continuing. Fibonacci retracement levels (23.6%, 38.2%, 50%, 61.8% and 78.6%) are a popular way to estimate where that pullback might stop.
How to draw it
- Find a clear impulse move: a swing low to a swing high (for an uptrend).
- Select the Fib tool on Supercharts and drag from the low to the high.
- The levels appear between them. In a downtrend, drag from high to low.
Which levels matter
The 38.2% level is a shallow pullback typical of strong trends. The 50–61.8% zone, often called the "golden pocket", is where many traders look for entries. A break below 78.6% often means the move is failing.
Make it stronger
Fibonacci levels work best when they line up with something else: a support zone, a moving average or a round number. That overlap is called confluence, and it is what turns a line on a chart into a high-quality trade location.
Educational content only, not financial advice. Trading involves risk of loss.