These Fibonacci retracement levels are plotted on a chart to form an asset in six lines. The first three lines are drawn at the highest point (100%), the lowest point (0%) and the average (50%). The remaining three lines are plotted at 61.8%, 38.2% and 23.6%. These numbers represent important percentages in the Fibonacci sequence.
Forex traders use the Fibonacci indicators to find suitable entry and exit points for their trades. The trick is to position your stop loss below the previous low price move the uptrend or above the previous high price move the downtrend.