@cryptotrading_insights: Fibonacci Tool Settings | Fibonacci Golden Zone Explained – 61.8% to 78.6% | Fibonacci Retracement What is Fibonacci Retracement? Fibonacci Retracement is a technical analysis tool used to identify potential reversal or continuation zones in price movement. It is based on the Fibonacci sequence — a natural mathematical ratio found throughout nature, art, and markets. In trading, these ratios help traders measure how much of a prior move the price might retrace before continuing in the direction of the trend. 🔹 Common Fibonacci Levels The key Fibonacci retracement levels are: 0.236 (23.6%) 0.382 (38.2%) 0.5 (50%) (not a Fibonacci ratio but widely used) 0.618 (61.8%) 0.786 (78.6%) These levels act as potential support (in a down retrace) or resistance (in an up retrace) zones. 🔹 How to Use Fibonacci Retracement You can use Fibonacci retracement in trending markets — either bullish or bearish. 1. Identify the Trend If the market is in an uptrend, draw the Fibonacci tool from the swing low → swing high. If the market is in a downtrend, draw it from the swing high → swing low. 2. Wait for a Retracement After a strong impulse move, the market often pulls back to one of the Fibonacci levels (usually 38.2%, 50%, or 61.8%). These retracements are where smart money looks for entries. 3. Look for Confluences Combine Fibonacci levels with: Fair Value Gaps (FVG) Breaker Blocks / Order Blocks Liquidity pools Premium vs. Discount zones BOS (Break of Structure) The stronger the confluence, the higher the probability of a valid setup. 4. Entry and Confirmation Look for entry patterns (e.g., bullish engulfing candle, CHoCH) at a Fibonacci level. Confirmation may also come from volume spikes or imbalance fills. Example: In a bullish trend: If price rallies from 1.2000 to 1.2300, then retraces back to 1.2180 (61.8%), and forms a bullish rejection candle — that’s a potential buy entry zone. 🔹 ICT/SMC Style Use of Fibonacci ICT traders often divide the range into: Premium zone (Above 50%) → Look for Sell Setups Discount zone (Below 50%) → Look for Buy Setups Price usually seeks liquidity around these levels before making a reversal or continuation. ⚙️ Best Fibonacci Settings for Trading In your trading platform (e.g., TradingView or MT4/MT5), set your Fibonacci tool like this: Level Ratio Label 0.0 0% Swing Low/High 0.236 23.6% Minor retracement 0.382 38.2% Shallow retrace 0.5 50% Midpoint (Premium/Discount) 0.618 61.8% Golden Ratio 0.705 70.5% Institutional retrace 0.786 78.6% Deep retrace 1.0 100% End of swing ✅ Optional Add-ons: Add 1.272, 1.618, and 2.0 for Fibonacci extensions (target zones). Use color coding — green for retrace levels, red for extensions. Enable “reverse” option if you switch from bullish to bearish setups. #FibonacciRetracement #ICTSMC #SmartMoneyConcepts #TradingEducation #goldenratio

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Saturday 04 October 2025 12:58:01 GMT