Fibonacci Retracement

fibonacci-retracement technical-analysis tutorial

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We have introduced several technical analysis tools and talked about them here.

Adding to existing set of tools, we are pleased to introduce one more technical analysis tool - Fibonacci Retracement.

Fibonacci Retracement technical analysis tool is based on the assumption that there are a certain ratios that naturally occur in nature. In a fibonacci sequence, ratio of two consecutive numbers is 1:1.618 or 0.618:1. Based on that, using fibonacci retracement, we can find support and resistance levels.

Fibonacci Retracement is most effective when a stock is tredning. Main idea is that when a stock is trending, it will pull back a percentage of the trend before continuing the trend. These retracement percentages are 38.2%, 50% and 61.8%.

We use a proprietery algorithm to find swings/trends to get fibonacci levels.

At clearnifty, you can find fibonacci retracement analysis on each stock page, my watchlist page, sector page and index page.

For more details, check out following links.

Other Tutorials on internet:
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Happy Investing!

Clearnifty Team.

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