Reviewed by Khadija Khartit Fact checked by David Rubin Fibonacci retracements are popular among technical traders. They are based on the key numbers identified by mathematician Leonardo Pisano ...

Technical analysts use four main Fibonacci-based techniques: retracements, arcs, fans, and time zones to identify potential support and resistance levels.

Fibonacci retracement levels are a strategy that some traders use to analyze a stock’s resistance levels. You can use many different retracement levels but one of the most common is 61.8%.