Fibonacci retracement levels are horizontal lines that show potential price reversal levels.The Fibonacci tool works best when the market is trending, which is the first thing you should know about it.The aim is to go long (or buy) on a retracement at a Fibonacci support level when the market is trending UP.And to go short (or sell) on a retracement at a Fibonacci resistance level when the market is trending DOWN.Because they attempt to foretell where price will be in the future, Fibonacci retracement levels are considered a predictive technical indcator .Trading futures, FX, CFDs, and stocks carries the risk of loss. Please think about whether this type of trading is right for you. Past achievement is not a predictor of future outcomes. This content is solely for amusement purposes and does not constitute investment advice or recommendations.Margin trading in foreign exchange, indices, and commodities includes a high level of risk and is not appropriate for everyone. The enormous degree of leverage can work both for and against you. You should carefully evaluate your investment objectives, level of experience, and risk appetite before opting to invest in foreign exchange or other .It's possible that you'll lose some or all of your initial investment. As a result, never invest money that you can't afford to lose. It is possible to lose more than your initial investment in some situations because it is not always easy to exit a market at the price you desire.