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Executing Technical Analysis
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Fibonacci Retracement - a popular tool that technical traders use to help identify price levels for transactions, stop losses or target prices.
Fibonacci Retracement It is a popular tool that technical traders use to help identify price levels for transactions, stop losses or target prices. Fibonacci Retracements is one of the most commonly used tools to identify a rebound in stock prices. They are based on the work of Italian mathematician Leonardo Pisano Bogollo that introduced the Fibonacci sequence, which is a sequence of numbers as follows: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, and so on. The Fibonacci retracement levels are 23.6%, 38.2%, 61.8%, and 78.6%. While not officially a Fibonacci ratio, 50% is also used. It helps investors make profits by identifying the end of a phase of falling prices avoid losses by spotting the end of bull runs. Let's understand more about such tools and indicators for effective investment decisions, and learn to execute technical analysis on Smart Money by Angel Broking.