Why do we always set our targets on Fibonacci retracement levels?
And why do we see the price hit the target and then make a correction or a pause?
✅ The answer:
Fibonacci levels are not random numbers; they are liquidity zones and decisions relied upon by major traders and institutions, and often occur at:
Profit taking
Slowdown or price correction
The most important Fibonacci retracement levels (0.382 – 0.5 – 0.618 – 0.786) represent:
Potential selling areas
Smart exit points
Levels where price historically reacts
This is why we use them as realistic and logical targets, not based on greed.
Why does a correction happen after hitting the target?
When the price reaches the resistance:
Profits are taken
Liquidity temporarily decreases
Indecision candles appear
And this is a healthy behavior, not a weakness in the trend.
Does the correction mean the end of the rise?
❌ No, as long as the trend is positive, the stop is fixed, and the indicators are supportive.
📌 Summary:
Fibonacci resistances =
Smart goals, better profit management, and reducing risk.
This is why many trades hit the target → correct → then continue,
And this is planned in advance, not by chance.
#MarketRebound #Binanceholdermmt #USChinaDeal #BinanceHODLerBREV