The market never moves in a straight line; it always moves through impulses and retracements.
After a strong bullish impulse, the market leaves imbalances, gaps, disequilibria... call them what you will. What you need to know is that these gaps or spaces between the candles are one of the traces left by the algorithm.
But the market needs to remain efficient and balanced, which is why after a strong impulse, we will almost always see a retracement, and that retracement usually reaches halfway through the previous movement, which is the 50% Fibonacci...
...And depending on multiple factors, it can move to levels of 60, 70, and even 80%... this happens because the algorithm understands that below half of that impulse, the price is cheap to buy.
This makes perfect sense because it's below 50% where you achieve the best risk-reward ratio... it's where you can risk less to gain more.
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