Fibonacci retracement is a popular topic in technical analysis. However, many people don’t about Fibonacci retracement in detail. So, If you want to know in detail, You should to these article till the end.
In this article, we will know What is Fibonacci Retracement, How to use it? and many more things that you should know. However, Fibonacci retracement can help you in doing trading in the Finacial market.
Fibonacci Retracement is a method in technical analysis to predict the financial market moves and determining the support and resistance.
Fibonacci retracement levels are in horizontal marks that show where support and resistance are likely to occur. However, These are based on the Fibonacci numbers. Each level is associated with a percentage that is 23.6%, 38.2%, 61.8%, and 78.6%. However, In it, 50% is added but in reality, it is not an official Fibonacci level.
How to use Fibonacci retracement tool?
Fibonacci retracement is popular among traders and Experts. It is simple to use by selecting the top and bottom. It will give the retracement forecast. Each level is associated with a percentage. It will help you understand the levels and trends.
Let’s know that How to use Fibonacci retracement tool step by step:-
I will show you that How to use the Fibonacci retracement tool in the Trading view. However, You can use this method in your chart also follow the steps.
Step 1) Go to the chart and select the Fibonacci retracement tool.
Step 2) After selecting Fib retracement, select the top and bottom. It will give the Fibonacci retracement levels. Use it and predict the price.
Fibonacci retracement Levels
The Fibonacci retracement levels are associated with a percentage that is 23.6%, 38.2%, 61.8%, and 78.6%. However, In it, 50% is added by experts but it is not an official level of it. This is a very useful tool to predict the level and trend.
This can be easily drawn between any two signification points, such as a high and a low or a low and a high.