It is important to note that this tool should not necessarily be used for price targets, rather just to get a feel for what kind of trend the current stock is in.

If you are a little confused, then don’t worry because it is easier to show you than write about it.

View vide0 – Fibonacci Fully Explained

Fibonacci analysis is a simple study that allows traders to forecast levels of support and resistance and project price targets. The Fibonacci tool is study just like a moving average. You input your parameters, and information will be given to you. The data is objective, but your inferences based on the data are subjective.

Essentially the Fibonacci tool allows you to measure the a stock’s previous trend from the low to the high point. Thereafter, the tool will spit out 3 levels of retracement: 33%, 50%, and 68%. All three can be used as support or resistance depending which side they are coming from. The tool can also be used to determine if a stock is within a trading range.

The Fibonacci is a very powerful tool that is easy to use, and will instantly improve your trading. To learn more and see it in action watch the video below:

Watch the video – How to use the Fibonacci tool