# Fibonacci Retracement

*Trading & Technical Analysis — Finicade finance glossary*

Fibonacci retracement marks levels at 23.6%, 38.2%, 50% and 61.8% of a prior move as candidate turning points for a pullback. There's no accepted mechanism connecting a medieval number sequence to markets, and 50% isn't even a Fibonacci ratio. It persists because so many traders watch the same levels that orders genuinely cluster there — self-fulfilling rather than predictive.

**Also known as:** fib levels, fibonacci levels, golden ratio trading

**Related terms:** [Support and Resistance](https://finicade.com/glossary/support-and-resistance), [Pullback](https://finicade.com/glossary/pullback), [Technical Analysis](https://finicade.com/glossary/technical-analysis), [Trend Line](https://finicade.com/glossary/trend-line), [Chart Patterns](https://finicade.com/glossary/chart-patterns)

Source: https://finicade.com/glossary/fibonacci-retracement