All about Fibonacci Retracements and Fibonacci Ratios

Fibonacci retracements are a common tool among traders and are based on the Fibonacci series identified in the 13th century by the famous Leonardo Fibonacci. The Fibonacci sequence is a set of numbers that is also related to nature, and also called the golden ratio. A Fibonacci retracement tool is used by technical analysts as a guide to the behavior of the market. Traders use the tool for identification of resistance levels, drawing support lines setting target prices, and placing stop-loss orders. During a technical analysis, Fibonacci retracement is done by picking a different extreme point on the stock chart, Continue Reading →