# Fibonacci 0.618 Entries

> The golden ratio retracement. Why 0.618 works and how to time the entry at the pullback.

- Canonical URL: https://www.fundedready.org/library/fibonacci/
- Markdown mirror: https://www.fundedready.org/ai/markdown/library/fibonacci.md
- Content type: Training library lesson
- Course: Fibonacci
- Lesson number: 7
- Last reviewed: 2026-04-25

## Quick Answer

The golden ratio retracement. Why 0.618 works and how to time the entry at the pullback.

## What is Fibonacci Retracement?

After an impulse move, price usually pulls back some fraction of the move before continuing. The "fib" levels — 0.382, 0.5, and 0.618 — mark common pullback depths. The 0.618 level (the golden ratio) is the deepest of the shallow retracements and often where institutional buyers step in for continuation trades.

## Why It Works

Fib levels are self-fulfilling because large numbers of traders and algos place orders at them. A clean retracement to 0.618 that respects the level is a high-probability continuation trigger — not because of the math, but because of the coordinated behaviour around the level.

## How to Trade Them

Watch for a strong impulse move, then let price pull back. The chart shows 0.382, 0.5, and 0.618 lines. Hit BUY when price tags or slightly undercuts the 0.618 line and shows rejection. The tighter your entry to 0.618, the higher your score.

## Your Mission

Wait for the pullback. Hit BUY at the 0.618 retracement. Don't buy 0.382 — you're too early. Don't wait past 0.618 — the pattern is breaking.

## TradingView Setup Help

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## Sources and Review Notes

- [FundedReady methodology](https://www.fundedready.org/methodology/): Review process, simulator scope, and educational disclaimers.
- [CME E-mini S&P 500 contract specs](https://www.cmegroup.com/markets/equities/sp/e-mini-sandp500.contractSpecs.html): Official ES contract specification reference.

This lesson explains simulator concepts and should be treated as education, not trading advice.