Fibonacci retracement is one of the most powerful technical indicators ever created.
Knowing how to use the tool right will place you among the trading elite and dramatically increase profits on your investments.
The Fibonacci sequence is a naturally occurring phenomenon found all throughout the universe.
Think snowflakes, seashells, even the proportions of the human body.
The stock market is no exception.
You see, a stock’s price never moves up or down in a straight line.
As a stock pulls back from a high point, it pauses or even reverses at several predictable levels.
What are these levels?
You guessed it… Fibonacci retracements.
No one is quite sure why a stock’s price reverses at these levels.
But you can unlock massive gains using these lines to time your stock purchases because they’re so reliable.
All you need to plot Fibonacci retracements on a stock chart are a low point and high point.
Many online trading platforms include Fibonacci retracements in their chart software.
Once you select two points, the Fibonacci ratio lines will be drawn on the chart.
You can use a pullback to one of these levels as a “Buy” trigger for any stock.
Fibonacci retracements can even be used on ETFs, commodities, and currencies.
If your chart software doesn’t have them, you’re in luck!
This tool will calculate Fibonacci levels for you manually on any stock by simply entering a low point and a high point.
Try it out now!