Using Fibonacci Retracement for Stock Trading Strategies
What is Fibonacci Retracement? Fibonacci retracement is a popular tool used in technical analysis to identify potential support and resistance levels. It is based on the Fibonacci sequence, and the key retracement levels (23.6%, 38.2%, 50%, 61.8%) help traders predict price reversals.
How Does Fibonacci Retracement Work? When a stock moves in a particular direction (up or down), traders look for it to retrace a portion of that move before continuing in the same direction. Fibonacci levels act as guideposts, suggesting where price might reverse.
How to Use Fibonacci Retracement in Trading By drawing Fibonacci retracement lines between significant highs and lows, traders can identify potential entry or exit points in a trend. When prices approach a retracement level, traders often prepare for a reversal or continuation of the trend
.Read more blogs click here
For investment in stock market please visit MONIL Corpus
