What do different Fibonacci retracement levels mean for a stock?

Whenever a noticeable up or down move happens in the price of stocks, it usually tends to retrace back before its next move. It is believed that it follows the Fibonacci retracement. These Fibonacci retracements often occur at five levels: 23%, 38.2%, 50%, 61.8% and 78%.After a stock makes a move to the upside, it can then retrace a part of that move down, before moving on again in the desired up direction.

Trade the Trend
These retracement levels provide a good opportunity for the traders to enter new positions in the direction of the trend.  The Fibonacci ratios i.e 61.8%, 38.2%, and 23.6% helps the trader to identify the possible extent of the retracement. The trader can use these levels to position himself for trade.
These retracement levels provide a good opportunity for the traders to enter new positions in the direction of the trend.
As a Fibonacci retracement trader, you need to look for the opportunity of the retracement. Once the stock starts the retracement, you can deploy the Fibonacci levels on charts and enter the trade when you find a good opportunity.
The Key
The word of caution, you cannot automatically buy the stock just because it is at the common retracement level. Look for candlestick development at the level. If there is no sign of a reversal in candlestick then it will move towards the next level. You do not know if or when the stock will reverse at a Fibonacci level!
You just mark these areas on a chart and wait for the signal to go long or short.
We should also use the support resistance levels on the chart together with Fibonacci levels. If there is a congestion area or swing high/low level around any out of the five retracement level then the reliability of that Fibonacci retracement level will be higher.
 See the shared graph below:

Reason: Fibs + Camarilla pivots

Took an entry after it took support from 100% level breaking trend-line and VWAP.

After it broke Cam S4 level raised the target to just below Cam R1 level. That's where it normally reaches after breaking S4. It coincidentally reached Fib 0% and reversed.
See, how beautifully it has worked in the above graph.

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