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chart_analysis:fibonacci_retracemen [2019/06/24 19:38] 127.0.0.1 external edit |
chart_analysis:fibonacci_retracemen [2023/07/21 20:46] jayanthi [The Sequence and Ratios] |
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====== Fibonacci Retracements ====== | ====== Fibonacci Retracements ====== | ||
- | ===== Introduction ===== | + | ===== What Are Fibonacci Retracement Levels? ===== |
- | Fibonacci Retracements are ratios used to identify potential reversal levels. These ratios are found in the Fibonacci sequence. The most popular Fibonacci Retracements are 61.8% and 38.2%. Note that 38.2% is often rounded to 38% and 61.8 is rounded to 62%. After an advance, chartists apply Fibonacci ratios to define retracement levels and forecast the extent of a correction or pullback. Fibonacci Retracements can also be applied after a decline to forecast the length of a counter-trend bounce. These retracements can be combined with other indicators and [[:chart_analysis:chart_patterns|price patterns]] to create an overall strategy. | + | Fibonacci retracement levels are based on ratios used to identify potential reversal points on a price chart. These ratios are found in the Fibonacci sequence. The most popular Fibonacci retracements are 61.8% and 38.2%. Note that 38.2% is often rounded to 38%, and 61.8 is rounded to 62%. After an advance, chartists apply Fibonacci ratios to define retracement levels and forecast the extent of a correction or pullback. Fibonacci retracement levels can also be applied after a decline to forecast the length of a counter-trend bounce. These retracements can be combined with other indicators and [[:chart_analysis:chart_patterns|price patterns]] to create an overall strategy. |
- | ===== The Sequence and Ratios ===== | + | ===== Fibonacci Sequence and Ratios in Simple Words ===== |
- | This article is not designed to delve too deep into the mathematical properties behind the Fibonacci sequence and Golden Ratio. There are plenty of other sources for this detail. A few basics, however, will provide the necessary background for the most popular numbers. Leonardo Pisano Bogollo (1170-1250), an Italian mathematician from Pisa, is credited with introducing the Fibonacci sequence to the West. It is as follows: | + | Fortunately, you don't have to delve too deep into the mathematical properties behind the Fibonacci sequence and Golden Ratio. There are plenty of other sources that go into it in detail. A few basics, however, will provide the necessary background for the most popular numbers. Leonardo Pisano Bogollo (1170-1250), an Italian mathematician from Pisa, is credited with introducing the Fibonacci sequence to the West. It is as follows: |
0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610...... | 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610...... | ||
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===== Using with SharpCharts ===== | ===== Using with SharpCharts ===== | ||
- | You can use our [[docs>chartnotes|ChartNotes annotation tool]] to add Fibonacci Retracement Lines to your charts. Below, you'll find an example of a chart annotated with Fibonacci Retracement Lines. | + | You can use our [[https://support.stockcharts.com/doku.php?id=chartnotes|ChartNotes annotation tool]] to add Fibonacci Retracement Lines to your charts. Below, you'll find an example of a chart annotated with Fibonacci Retracement Lines. |
{{:chart_analysis:fibonacci_retracemen:fibo-8-shrpchrt.png|Chart 7 - Fibonacci Retracements}} | {{:chart_analysis:fibonacci_retracemen:fibo-8-shrpchrt.png|Chart 7 - Fibonacci Retracements}} | ||
- | To learn more about how to add this annotation to your charts, check out our Support Center article on [[docs>chartnotes:line_studies#fibonacci_retracement_lines|ChartNotes' Line Study Tools]]. | + | To learn more about how to add this annotation to your charts, check out our Support Center article on [[https://support.stockcharts.com/doku.php?id=chartnotes:line_studies#fibonacci_retracement_lines|ChartNotes' Line Study Tools]]. |
===== Further Study ===== | ===== Further Study ===== | ||
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