How to Identify Reversals Point

Method #1: Fibonacci Retracement

A popular way to identify retracements is to use Fibonacci levels.
For the most part, price retracements hang around the 38.2%, 50.0% and 61.8% Fibonacci retracement levels before continuing the overall trend.
If price goes beyond these levels, it may signal that a reversal is happening. Notice how we didn’t say will.
As you may have figured out by now, technical analysis isn’t an exact science, which means nothing certain… especially in forex markets.