Cryptocurrency Q&A
What is Fibonacci in the stock market?
What is Fibonacci in the stock market?
Stefano
Mon Nov 11 2024
|
6 answers
1478
I've heard about Fibonacci and its application in various fields. Now, I'm curious to understand its role specifically in the stock market. How does Fibonacci help in analyzing the stock market trends or making trading decisions?
6 answers
AltcoinExplorer
Wed Nov 13 2024
It is intriguing to note that the values used in Fibonacci retracement levels, 23.6%, 38.2%, and 61.8%, are derived from the Fibonacci sequence, a series of numbers in which each number is the sum of the two preceding ones.
Was this helpful?
207
87
CryptoSavant
Wed Nov 13 2024
Fibonacci retracement levels are graphical representations used in technical analysis to identify potential areas of support and resistance for stock prices.
Was this helpful?
397
83
SkyWalkerEcho
Wed Nov 13 2024
These levels are calculated by taking two extreme points on a stock's price chart, usually a significant peak and trough, and dividing the vertical distance by the key Fibonacci ratios.
Was this helpful?
245
39
Lorenzo
Wed Nov 13 2024
The resulting percentages, 23.6%, 38.2%, and 61.8%, are then plotted horizontally on the chart to create the Fibonacci retracement levels.
Was this helpful?
79
56
Daniele
Wed Nov 13 2024
Traders often use these levels as indicators of where a stock's price may find support or resistance, potentially leading to buying or selling opportunities.
Was this helpful?
223
62
Load 5 more related questions
