Leonardo Pisano Fibonacci (1170–1240 or 1250) was an Italian number theorist. He introduced the world to such wide-ranging mathematical concepts as what is now known as the Arabic numbering system, the concept of square roots, number sequencing, and even math word problems.
Which leads us to the Fibonacci Retracement (FR). The FR are a set of ratios that allow traders to identify key levels of support and resistance for stocks. Unlike moving averages, FRs are fixed. They can be used to identify potential entry and exit points to trade on trending stocks.
FRs are used to indicate levels of support and resistance for a stock’s price. However, they should be used on longer time frames like the Daily candle to weed out the spikes and whipsaws. FRs are set by the extent of the previous bullish or bearish run and do not change daily in the current trend as moving averages do. Therefore, it can be significantly easier to identify and anticipate support and resistance levels from Fibonacci sequences.
2 comments:
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these tips may help me in the future.
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