Fibonacci retracement levels are a strategy that some traders use to analyze a stock’s resistance levels. You can use many different retracement levels but one of the most common is 61.8%.

Technical analysts use four main Fibonacci-based techniques: retracements, arcs, fans, and time zones to identify potential support and resistance levels.

The Fibonacci extension is a mathematical-based technical analysis tool used to project price targets. The Fibonacci method is my preferred tool to use for offensive selling for two reasons: 1.