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Learn Fibonacci Retracement in 3 Minutes: Identifying Key Support and Resistance in Gold Prices

2025-11-10 09:20:43 | 浏览 82

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In gold CFD trading, price fluctuations are often influenced by both market sentiment and technical factors. For investors, learning to use Fibonacci Retracement is a practical skill that can help identify potential price reversal zones and entry and exit points.


What is Fibonacci Retracement?

Fibonacci Retracement originates from the sequence theory of Italian mathematician Leonardo Fibonacci. The core principle lies in a series of percentages, such as 23.6%, 38.2%, 50%, 61.8%, and 78.6%. Among these, 0.618, or its reciprocal 1.618, is otherwise known as the “Golden Ratio”. These values are widely used in financial markets because investor behavior often causes prices to pause or reverse within these proportional ranges, forming key support or resistance levels.


Chart-drawing and Application

Open the chart tool on your trading platform and first identify the highs and lows of the major price swings. If prices are trending upwards, a retracement line is drawn from the low point (0%) to the high point (100%); if the trend is downwards, do the opposite. After completion, the system will automatically display the key ratio levels, allowing you to assess the strength of price pullbacks.


Generally, 38.2% and 61.8% are common support and resistance levels. After a sustained trend begins to reverse, investors pay particular attention to these levels to find potential entry opportunities.

As shown in the chart, the downtrend bounces near $530, briefly pausing after touching the 0.382 Fibonacci level, indicating that this is a resistance level. The price attempted to break out several times unsuccessfully before declining again.


In summary, Fibonacci Retracement helps investors understand market rhythms more systematically, identify potential support, resistance, and entry opportunities.