Fibonacci

Markets never go in a straight line, in either direction. One question then that a trader has to ask is at what level to expect a retracement, aka a pullback. Failing to account for retracement can either result in missing out on profits, by exiting the trade too soon.

Understanding how trends form is obviously vital if you want to time entry and exit points for buying and selling. This makes Elliott theory an interesting model.

Does Fibonacci retracement actually live up to its reputation as a predictive tool? Take a look at the following results and make up your mind.

Fibonacci fan is primarily a tool for analysing trends. The most basic use of Fibonacci fan is to mark out lines of support and resistance within a trend channel.

Pivots are a tool often used by range traders and day traders to work out likely reversal points based on the previous day’s price activity. The beauty of pivots is their simplicity.

Fibonacci series and the Golden Ratio are two phrases you’ve most likely heard about before. How are they used in trading, and how can you profit from them?