Fibonacci retracement — a convention, not a forecast

Fibonacci retracement draws horizontal levels — 23.6%, 38.2%, 50%, 61.8%, 78.6% — between a recent low and high. Measuring down from the high is one of two equally conventional directions; the same levels can be drawn up from a low, and the ratios don't change.

Here is the honest part: those levels matter because enough traders watch them and place orders around them. That shared attention can make a level briefly behave like support or resistance — a coordination point, not a law of nature.

So it is a convention. It works to the extent people expect it to and act on that expectation. The ratio itself doesn't cause anything; the crowd's shared belief does.

On Aureus charts the levels are an optional overlay — the Fib toggle, off by default — drawn in gold between the shown range's low and high and labeled only with their percentages. They are a drawing convention: a way of marking a range, never a claim that the price will react to any of them, and turning them on changes what you see, not what anyone knows.