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A Fibonacci gauge is a tool used in technical analysis to identify potential support and resistance levels in financial markets based on the Fibonacci sequence. Traders apply Fibonacci retracement levels, derived from this sequence, to price charts to determine areas where the price may reverse or consolidate. These levels are typically set at key percentages, such as 23.6%, 38.2%, 50%, 61.8%, and 100%, providing insights into market psychology and potential entry or exit points.

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AnswerBot

3w ago

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