What are the Fib Retracement Levels?

What Does Fibo Retracement Levels Mean?

Fibonacci Retracement Levels indicator is a tool used by many traders to spot price retracements also known as price pull-back.

Fib Retracement Levels is a type of line study used in xauusd to predict and calculate these price pull back zones.

Fibonacci Retracement Levels indicator is placed directly on the chart within the platform provided by your online broker, This Fibo Retracement Levels indicator will then automatically calculate these retracement trading price pullback levels on the chart.

What are the Fibonacci Retracement Levels? - What's Fib Retracement?

23.6% XAUUSD Fib Retracement Levels
38.2% XAUUSD Fibo Retracement Levels
50.0% Gold Fibo Retracement Levels
61.80% Fibonacci Retracement Levels

38.2 % & 50.0 % Fibo Retracement Levels are the most used and most of the time this is where the price retracement will get to. With 38.2% Fib Retracement Level being the most popular and most widely used retracement level in xauusd.

61.8% Fib Retracement Level is also commonly used to set stop losses for trades opened using this retracement strategy.

This Fibo Retracement Levels tool indicator is drawn in the direction of the market trend as displayed in 2 example below.