Draw Fibonacci retracement and extension grids to identify hidden support and resistance that may come into play during the life of a trade.

Fibonacci retracements are tools to draw support lines, identify resistance levels, and place stop-loss orders. Learn how to use Fibonacci ratios in trading.

The first five numbers in the Fibonacci sequence are 1, 1, 2, 3, and 5. Each square on the clock represents one of these numbers—the side lengths of each square match these numbers.

These ratios create the Fibonacci levels that you can use when trading: 23.6%, 38.2%, 61.8% and 78.6%. An unofficial Fibonacci retracement level often used for trading is 50%. Imagine that a share ...

Drawing trendlines can be a great way to determine support or resistance values when a strong market trend is present. However, trendlines by themselves leave a lot to be desired when it comes to ...

Fibonacci numbers “always make mathematicians happy,” said Tara Holm, a mathematician at Cornell University. Their appearance in McDuff and Schlenk’s work, she added, was “some indication ...