Skill
Fibonacci Trading
Finance and Accounting
Fibonacci trading is a technical analysis method used by traders in stock, forex, and cryptocurrency markets that applies ratios derived from the Fibonacci sequence (such as 23.6%, 38.2%, 61.8%) to identify potential support, resistance, and price reversal levels. Traders draw Fibonacci retracement or extension lines on price charts between significant highs and lows to predict where a price trend might pause or reverse. It is a popular tool among technical analysts, though its predictive validity is debated among more fundamentals-focused investors.
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