Fibonacci uses the following ratios
100%, 61.8%, 50%, 38.2%, 23.6%, appearing in horizontal lines on the chart, and can determine support and resistance levels. These ratios are formed by drawing a trend line between two terminal points and dividing the vertical distance between them in basic fibonacci ratios. Peripheral levels are known as patch up and patch down.

To identify fibonacci levels, we draw a trend line from the down to the patch up in the uptrend, and reverse the trend line in the downward trend.
The chart below shows fibonacci levels on the bullish price. Screenshot_105.png

As you can see in the graph, we reached fibonacci levels by pressing downcorrections at points 1,000 and 1.4. These levels showed where the price is heading and where it has changed direction, which is fixed at 61.8%, 38.2%, and 23.6%. The 61.8% level represents the usual support level that price movement has experienced several times. After that, you can watch the price movement break the 38.2% fibonacci level and retest that level. In this example, the currency pair is expected to experience the 23.6% fibonacci level at 1.11.

The following chart shows how fibonacci levels are determined and applied to the price movement in the bearish direction, in which case we charted the trend line from a bullish rebound at 1.1037 to a bearish rebound at 1.0994. Here you can clearly see the price reversing its trend at the basic Fibonacci levels of 50% and 23.6%.
Fibonacci bounces cannot be relied upon as an error-free analysis tool, so you cannot rely on them to buy and sell at the points you select.
Only you can count on them to identify areas of interest, or as an indicator that determines the future direction of price movement.