Wednesday, January 1, 2014

Fibonacci Retracement



Fibonacci Retracement used in technical analysis that refers to areas of support 

price stops going lower

price stops going higher

The Fibonacci retracement tool  is the potential retracement of a financial asset's original move in price. Fibonacci retracements use horizontal lines to indicate areas of support or resistance at the key Fibonacci levels before it continues in the original direction. These levels are created by drawing a trendline between two extreme points and then dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%.


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