What is a Fibonacci retracement? Fibonacci Series Fibonacci (born Leonardo de Pisa) introduced the concept of this series of numbers in Europe. They had been described in Indian mathematics as early as 200 BC to describe poetry. In the series, each number is the sum of the preceding two num...
Support levels are where people are interested in buying enough to stop prices from falling. This is where downtrends might take a break or change direction. You can find these support levels at fibonacci ratios like 0.382, 0.500, and 0.618 using fibonacci retracement. When prices bounce off th...
Retracement additions. A retracement happens when the market trend temporarily reverses; as mentioned earlier, this is fairly normal movement before the market returns to the current trend. However, some investors try to capitalize on these retracements by investing more when the market briefly decline...
Technical analysisis a critical component of successful scalping. The problem is that getting up to speed can for some be as complicated and involved as learning another language. Mysterious terms like “Bollinger Bands,”“cup and handle,”“diamond top” and “Fibonacci retracement” can leave ...
What is arbitrage? Arbitrage is a financial or economic strategy that involves exploiting price differences for the same asset, security, or commodity in different markets or locations. The goal of arbitrage is to make a risk-free profit by taking advantage of price disparities. ...
To identify a counter-trend opportunity, define a reference point (e.g., all-time high/low), observe a strong move toward the reference point, watch for a false breakout, set a reasonable stop loss below the swing low, and have a realistic profit target. Position sizing is crucial for ...
2. Fibonacci Retracement Zones Fibonacci retracement zones are levels on a price chart that are based on the Fibonacci sequence. These zones are derived by drawing horizontal lines at key Fibonacci ratios, such as 38.2%, 50%, and 61.8%. Traders often use these zones to identify potential rever...
is a contractual arrangement wherein the seller of a business agrees to receive additional payments based on the performance of the business following its acquisition. This structure enables the buyer to mitigate risk and provides the seller an opportunity to realize additional value from the deal. ...
A Fibonacci channel is a technical analysis tool used by traders to identify potential future levels of support and resistance. It is similar to Fibonacci retracement, but the lines are drawn diagonally and run parallel to two selected highs in a downtrend, or two selected lows in an uptrend. ...
Aretracementis a brief reversal in the general upward trend of a security's price. Even during a bull market, it's unlikely that stock prices will only ascend. Rather, there are likely to be short periods of time in which small dips occur, even as the overall trend continues upward. Som...