How do you use Fibonacci retracements correctly?

The 61.8% (golden ratio) is the most respected Fib level. Combine it with a moving average or previous S/R and it becomes a high-probability zone.

Draw Fib from swing low to swing high for uptrends. Key levels: 38.2%, 50%, 61.8%. Price rarely hits them exactly — look for reactions within a zone around these levels.