Read Fibonacci Retracements Levels

This article for Fibonacci beginners, we’ll learn in this article how to read and understand Fibonacci numbers for charts pattern.

Charts pattern are recognized by resistance and support levels are formed, we measure these levels and compare it with charts pattern levels we know, then we start to make the trade setup.
You may not can read the ratio numbers in your trade, for example if you read ratios like 0.618, 0.382, 1.618, what these numbers mean??

Charts pattern like Gartley pattern, bat pattern, butteryfly pattern and crab pattern consists of 4 waves, 0.618 is the first retracement wave, you can measure this level by Fibonacci tool in your chart window, and this is the first resistance level.

To know how we get the value 0.382, your start point is A and B will your end. Then measure the level we have, and this is the first support level.

The last number is 1.618. and this is suppose to be the last wave and resistance level, to measure this level you need to move the start point to B and the end to C. By identify this level you have a good chance to make your setup for a successful trade. Good luck.