Fibonacci Retracement

Fibonacci Retracement - A set of horizontal support/resistance levels derived from the Fibonacci sequence (commonly 23.6%, 38.2%, 50%, 61.8% between a high and low). These levels predict where price may reverse during a retracement in an ongoing trend. Forex robots use Fibonacci retracements to place entry orders on pullbacks or to set profit targets at key retracement levels.