Something important is that it can be used on higher time frame like 1 week (1W) or 1 day (1D) from the very top to the bottom to see the bigger picture.

If you use lower time-frames like 12h, 4h, etc. the fib retracement can be used to identify local ranges.

You just draw it from the top to the bottom. It can also be edited in TradingView to add more levels etc.