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It is a technical analysis tool attached from bottom to top in a rising market and from top to bottom in a declining market. The horizontal lines show the Fibonacci Retracement levels (ratios): 0.236, 0.382 and 0.618. The levels serve as potential support and resistance. The ratios are derived by dividing any number in the sequence by:

the next one, 55/89=0.618
the number two places to the right, 55/144=0.382
the number three places to the right, 55/233= 0.236

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