The 1.272 Fibonacci retracement level can be a reliable entry point, but its effectiveness depends heavily on the market context and trend strength.
In strong trending markets, it often acts as a reliable pullback zone where the price finds support before continuing its move.
However, it may not hold consistently in choppy or sideways markets.
In my example, the Dow Jones was undergoing a 9% + pullback, so I thought it was a pretty good bet [with solid risk management] to go long.
Confirming the entry with technical tools like volume analysis, moving averages, or candlestick patterns is also beneficial.
For example, a bullish reversal candle at the 1.272 level in an uptrend can signal a high probability of entry.
Do you use the 1.272 level in your trading or prefer other Fib levels like 0.618 or 0.786? 🤔📊
