Speak Stocks » studies http://speakstocks.com Learn everything about stocks Sat, 13 Aug 2011 21:57:41 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 How to Use Fibonacci http://speakstocks.com/how-to-use-fibonacci/ http://speakstocks.com/how-to-use-fibonacci/#comments Thu, 04 Dec 2008 19:54:16 +0000 Amey S http://speakstocks.com/?p=56 We already know about how to read support and resistance, but what if there was a way to find these indicators based on previous trends?

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

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