As one of the most important concepts in forex-trading/” title=”How to Maintain a Positive Mindset in Forex Trading”>technical analysis forex, Fibonacci retracement has been used by traders for decades. This article will explore this technical tool and how it can be used to help you build a sound forex trading strategy. Fibonacci retracement is a popular tool used by technical analysts to help identify potential areas of support or resistance. It is based on the mathematical relationship between the Fibonacci sequence and price action in the financial markets. This tool allows traders to identify points of support and resistance in a price chart, which can then be used to form buy and sell signals. It is most commonly used to identify potential areas of support when a price is falling and potential areas of resistance when a price is rising. Traders use Fibonacci retracement in combination with other technical analysis tools, such as moving averages, to make more informed decisions about their trades.
Fibonacci Retracement: A Technical Analysis Guide for Forex Trading
By Lena K. Bradley Nov 11, 2023