Fibonacci retracement is displayed by drawing lines between two extreme points, a high and (opposing) low peak. A series of horizontal lines will be drawn intersecting the trend line at the Fibonacci levels of 0.0%, 38.2% with 61.8% or 33.3% with 66.6%, 50%, and 100%.In the market of currency trading, after a significant price move (up or down), prices will often retrace a significant portion (if not all) of the original move. As prices retrace, support and resistance levels often occur at or near the Fibonacci Retracement levels.
In general, they can be applied both to price and time, although it is more common to use them on prices. The most common levels used in retracement analysis in currency trading are 61.8%, 38% and 50%. When a move starts to reverse the 3 price levels are calculated (and drawn using horizontal lines) using a movements low to high. These retracement levels are then interpreted as likely levels where counter moves will stop.
It is interesting to note that the Fibonacci ratios were also known to Greek and Egyptian mathematicians. The ratio was known as the Golden Mean and was applied in music and architecture. A Fibonacci spiral is a logarithmic spiral that tracks natural growth patterns.

In currency trading, we advise you to test this tool in demo account trading before using it in real account.