How-to Fibonacci drawing tool

How to use Fibonacci retracements on Kite

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Fibonacci retracements identify potential support/resistance levels during a counter-trend pullback. Based on Fibonacci ratios; widely used by Indian retail traders.

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Market-risk disclaimer. Trading involves risk. Tools and indicators are not guarantees.

Step-by-step procedure

See the procedure infobox above for the seven steps.

Key Fibonacci ratios

RatioValueOrigin
23.6%0.236Approximately 0.382^2
38.2%0.3821 - 0.618 (golden ratio related)
50%0.50Midpoint (not strictly Fibonacci but customary)
61.8%0.618Golden ratio (Phi - 1)
78.6%0.786√0.618

See also

External references

References

  1. Zerodha support documentation on Fibonacci tools.
  2. Varsity technical analysis module on Fibonacci retracements.

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