What Is a Fibonacci Retracement Level and Which Ones Are Most Significant for Resistance?

Fibonacci Retracement levels are horizontal lines indicating where support and resistance are likely to occur, based on the mathematical ratios derived from the Fibonacci sequence. The most significant resistance levels for a dead cat bounce, following a major drop, are typically the 0.382, 0.50 (psychological mid-point), and 0.618 retracement levels of the entire preceding move.