The major reason why Fibonacci retracement works is because the patterns appear in nature and many traders swear by these support and resistance levels.
When a Fibonacci retracement level is identified on a higher timeframe chart, you can be sure that a large number of traders will be watching that level, many of them having existing orders around the strong level.
How and where to enter trades using Fibonacci retracement levels gets really easy when you’re using the simple Fibonacci trading strategy in the video above.
The most important Fibonacci ratios/retracements are the 38,2% the 50% and the 61,8% levels.
Build your Fibonacci trading method around these support and resistance levels, and your trading account will thank you.
Remember; trading strategies you trade in the direction of the trend will give you a good risk-reward and high win rate.
A good strategy to trade the retracement levels is to wait for a candlestick patten
to confirm the level before you take a position.