Fibonacci retracements are one of the most effective tools for identifying potential entry and exit points in Forex. After a significant price movement, draw Fibonacci levels to highlight potential reversal zones. For example, the 38.2%, 50%, and 61.8% levels often act as key support or resistance points. Combine Fibonacci retracements with candlestick patterns or moving averages for added confirmation. This tool is particularly effective in trending markets, where pullbacks often align with these levels. Mastering Fibonacci retracements can enhance your trading precision and improve your win rate over time.