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{"id":53,"date":"2012-01-02T13:15:34","date_gmt":"2012-01-02T13:15:34","guid":{"rendered":"http:\/\/stockmarket.what-todo.com\/stockmarket\/?page_id=53"},"modified":"2022-05-02T10:55:31","modified_gmt":"2022-05-02T10:55:31","slug":"lesson-4","status":"publish","type":"page","link":"http:\/\/stockmarket.what-todo.com\/stockmarket\/?page_id=53","title":{"rendered":"Fibonacci Retracement"},"content":{"rendered":"

<\/p>\n

Fibonacci Retracement<\/span><\/h1>\n

In\u00a0finance,\u00a0Fibonacci retracements<\/strong> is a method of\u00a0technical analysis for determining\u00a0support and resistance levels. They are named after their use of the\u00a0Fibonacci sequence. Fibonacci retracement is based on the idea that markets will retrace a predictable portion of a move, after which they will continue to move in the original direction.<\/p>\n

Fibonacci retracement is created by taking two extreme points on a chart and dividing the vertical distance by the key Fibonacci ratios. 0.0% is considered to be the start of the retracement, while 100.0% is a complete reversal to the original part of the move. Once these levels are identified, horizontal lines are drawn and used to identify possible\u00a0support and resistance levels.<\/p>\n

\"Fibonacci<\/a><\/p>\n

Fibonacci retracement levels shown on the USD\/CAD\u00a0currency pair. In this case, price retraced approximately 38.2% of a move down before continuing.<\/h6>\n

<\/p>\n

Fibonacci ratios<\/span><\/h2>\n

Fibonacci ratios are mathematical relationships, expressed as ratios, derived from the\u00a0Fibonacci sequence. The key Fibonacci ratios are 0%, 23.6%, 38.2%, and 100%.<\/p>\n

\"\"<\/a><\/p>\n

 <\/p>\n

 <\/p>\n

The key Fibonacci ratio of 0.618 is derived by dividing any number in the\u00a0sequence by the number that immediately follows it.\u00a0For example: 8\/13 is approximately 0.6154, and 55\/89 is approximately 0.6180.<\/em><\/p>\n

\"Fibonacci<\/a><\/p>\n

 <\/p>\n

 <\/p>\n

The 0.382 ratio is found by dividing any number in the\u00a0sequence by the number that is found two places to the right.\u00a0For example: 34\/89 is approximately 0.3820.<\/em><\/p>\n

\"Fibonacci<\/a><\/p>\n

 <\/p>\n

 <\/p>\n

The 0.236 ratio is found by dividing any number in the\u00a0sequence by the number that is three places to the right.\u00a0For example: 55\/233 is approximately 0.2361.<\/em><\/p>\n

\"Fibonacci<\/a><\/p>\n

 <\/p>\n

 <\/p>\n

The 0 ratio is\u00a0:<\/p>\n

\"Fibonacci<\/a><\/p>\n

 <\/p>\n

 <\/p>\n

Continue to Lesson 5<\/a><\/h2>\n

<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Fibonacci Retracement In\u00a0finance,\u00a0Fibonacci retracements is a method of\u00a0technical analysis for determining\u00a0support and resistance levels. They are named after their use of the\u00a0Fibonacci sequence. Fibonacci retracement is based on the idea that markets will retrace a predictable portion of a move, after which they will continue to move in the original direction. Fibonacci retracement is created […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":2,"menu_order":4,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_mi_skip_tracking":false},"yoast_head":"\nFibonacci Retracement<\/title>\n<meta name=\"description\" content=\"Technical analysis stock trading Fibonacci Retracement, learn how to use Fibonacci Retracement when trading stocks. time your stock investment with tech\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/stockmarket.what-todo.com\/stockmarket\/?page_id=53\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fibonacci Retracement\" \/>\n<meta property=\"og:description\" content=\"Technical analysis stock trading Fibonacci Retracement, learn how to use Fibonacci Retracement when trading stocks. time your stock investment with tech\" \/>\n<meta property=\"og:url\" content=\"http:\/\/stockmarket.what-todo.com\/stockmarket\/?page_id=53\" \/>\n<meta property=\"og:site_name\" content=\"Stock Trading - 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