What is Fibonacci retracement?

Fibonacci retracement measures how deeply a pullback retraces a prior swing. Common ratios include 38.2%, 50%, 61.8%, and 78.6%.

In Elliott context, wave 2 often retraces wave 1 deeply (frequently toward 61.8%); wave 4 often retraces wave 3 more shallowly (often near 38.2%). These are tendencies, not rules.

Subscribers can compare a Signal's entry zone to nearby Fib levels, then size with stop distance—not Fib alone.