Fibonacci retracements are a powerful tool for identifying potential reversal levels in the Forex market. Based on the Fibonacci sequence, these levels—23.6%, 38.2%, 50%, 61.8%, and 78.6%—help traders spot where price might retrace before resuming its trend. To use them, identify a significant price swing (high to low or low to high) and apply the retracement tool. Look for confluence between Fibonacci levels and other key areas like support and resistance or trendlines. For example, if the price retraces to the 61.8% level and aligns with a previous support zone, it could be an excellent entry point. Combine Fibonacci with other tools for even greater accuracy.