Choosing the Right Swing for Fibonacci
Retracement levels only help when the impulse you mark is the impulse the market is still respecting.
Many Fibonacci mistakes begin before any ratio is drawn. If the swing high and low do not describe a clear impulse that price has already respected, the grid becomes decoration. Start by asking whether the move is impulsive or corrective, whether volume or range expansion confirms it, and whether a more obvious nearby swing would change the entire map. In practice labs we often discard the first candidate swing and keep the second—the one that aligns with a prior break of structure. That habit alone removes a large share of weak levels. Once the swing is settled, place the tool from origin to terminus without adjusting for “looks better.” Then step back and ask which ratios sit near prior demand, supply, or a round number. Confluence is the filter; the ratios are only the first pass.