Lesson 10 of 124:063 Sources
Fibonacci retracement and extension
Recorded. Publishing soon
Educational content, not investment advice. Nour explains how markets work. She never tells you what to buy or sell.
Fibonacci levels come from a sequence where each number is the sum of the two before it (1, 1, 2, 3, 5, 8, 13, 21…).
- Retracement levels: 23.6%, 38.2%, 50%, 61.8% of a clear move (50% is not a Fibonacci number but is widely watched).
- Example: a move from 100 to 200 gives ≈162, 150 and ≈138.
- Extension (three points) projects 61.8%, 100% and 161.8% of the first wave to estimate possible targets.
- Levels gain weight when they meet other tools. Use them as evidence, not in isolation — external shocks can override all levels.
Quick check
Three questions. Pick an answer to see why.
1.Which retracement level is NOT a Fibonacci ratio but is commonly watched?
2.A stock rose from 100 to 200. The 61.8% retracement is near:
3.How should Fibonacci levels be used?
Sources
Every fact in this lesson is backed by the sources below.
- 1.MetaTrader 5 Help — Fibonacci toolsFibonacci sequence; retracement levels 0, 23.6, 38.2, 50, 61.8, 100%
- 2.MetaTrader 5 Help — Fibonacci ExpansionExpansion drawn on three points with levels 61.8%, 100%, 161.8% of the first wave
- 3.CME Group Education — Fibonacci retracements and extensionsGolden ratio ~1.61; 50% not a Fibonacci number; 38.2% shallow, 50% medium; use as evidence not in isolation; external events can shock the market
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