The Fibonacci retracement levels are a popular technique used in trading and investment to predict potential price reversals and trends. They are based on the Fibonacci sequence, a mathematical principle that has been used for centuries in various fields, including astronomy, mathematics, and art. In this article, we will explore the Fibonacci retracement levels above 100, their significance in the market, and how to use them for trading purposes.

What are Fibonacci Retracement Levels?

Fibonacci retracement levels are calculated using the Fibonacci sequence, which is a series of numbers generated by the relationship between two successive numbers in the sequence. The Fibonacci sequence starts with 0, 1, 1, 2, 3, 5, 8, 13, 21, and so on. Each number in the sequence is the sum of the two previous numbers. Fibonacci retracement levels are calculated using the ratio of the distance traveled by the price from its previous high or low to its previous high or low, respectively. The Fibonacci retracement levels are then expressed as percentages of the distance traveled, such as 38.2%, 50%, and 61.8%.

Understanding Fibonacci Retracement Levels Above 100

The Fibonacci retracement levels above 100 are calculated using the same principle as the standard Fibonacci retracement levels, but with a higher cutoff point. The higher the cutoff point, the more significant the retracement levels become. In other words, the Fibonacci retracement levels above 100 are more likely to indicate significant price reversals and trends.

Trading with Fibonacci Retracement Levels in the Market

The Fibonacci retracement levels are widely used by traders and investors as a tool to predict potential price reversals and trends. They can be used in various ways, such as:

1. Determine entry and exit points for trades: Traders can use the Fibonacci retracement levels to identify potential entry and exit points for their trades. For example, if the price breaks through a previous high or low, it is likely to reverse and return to the Fibonacci retracement level, which can be used as an exit point for the trade.

2. Identify potential trend changes: Traders can use the Fibonacci retracement levels to identify potential trend changes. For example, if the price reaches a Fibonacci retracement level that is higher than the previous high, it is likely that the trend has reversed and is now heading in the opposite direction.

3. Evaluate risk and reward: Traders can use the Fibonacci retracement levels to evaluate the risk and reward of a trade. For example, if the price reaches a Fibonacci retracement level that is higher than the previous high, it is likely that the price has moved a significant distance from its previous high, which can indicate a higher potential reward but also a higher risk.

The Fibonacci retracement levels above 100 are a valuable tool for traders and investors to understand and trade in the market. By understanding the significance of these levels and using them in their trading strategies, traders can improve their ability to predict potential price reversals and trends, ultimately increasing their chances of success in the market. However, it is essential to remember that Fibonacci retracement levels are only one of many factors that should be considered when making trading decisions and should not be used in isolation.