Fibonacci trading is a method of technical analysis that uses mathematical ratios—most notably the —to identify potential support and resistance levels in financial markets. While widely used, its effectiveness is a subject of debate among traders, often seen as either a powerful psychological tool or a case of "voodoo science" and confirmation bias. Core Tools & Ratios
: 23.6%, 38.2%, 50% (psychological, not a true ratio), 61.8%, and 78.6%. Fibonacci Trading
Traders on Investopedia and TrendSpider emphasize that Fibonacci levels are not guaranteed reversal points but zones of interest. Fibonacci trading is a method of technical analysis