ForexGen studies past price and volume changes in order to build up simulations on future price movements. ForexGen's analysts mainly make use of charts and financial formulas to gather enough information used in technical price speculations.
Fibonacci retracements technical analysis refers to a move where an asset retraces portion of an original move and finds support/resistance from a fibonacci level, continuing to original direction of the move.
The fibonacci levels that are used in finding fibonacci retracements are found through drawing of a trendline between two extreme points and then dividing the vertical distance by Fibonacci ratios of
- 61.8% and
The indicators for Fibonacci retracement levels are very popular for both long term and short term day traders.
With the retracement levels, you can potentially find levels of entry or exit points to trades and additional lots on a pyramid system, target prices, or stop losses.
The Fibonacci retracements are often used together with other indicators, and some fundamental analysis based traders use these levels to determine either to buy on dips or sell on rallies, depending on the direction of the move.
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