Fibonacci retracement is a popular tool in technical analysis used by traders to identify potential reversal levels and support or resistance points in the price movement of assets. Based on the ...
The 'golden ratio' plays an important role in both stock analysis and nature Centuries ago, before there was any semblance of a stock market, one Italian developed a theory that would lay the ...
Imagine the market is like a massive rubber band. When stretched too far in one direction, it must inevitably snap back, or retrace, before moving forward again. The challenge for the individual ...
Fundamental investors often talk about “value levels” and “well-valued stocks”, but when it comes to determining at what price to buy a stock, there is often little agreement on when a stock is really ...
When it comes to individual stocks, I generally favor fundamental analysis over technical. It should be obvious that things like the prospects for the economy, the quality and popularity of a ...
A retracement in investing refers to a temporary reversal in the direction of an asset's price that occurs within a larger trend. It represents a short-term dip or pullback before the asset resumes ...
The Fibonacci sequence is more than a historical curiosity. It is a practical method of technical analysis used to highlight potential areas that traders monitor for support and resistance.
The S&P 500 Index (SPX) continues to rally after the coronavirus market crash that started in March. The index, however, is running right into its 61.8% Fibonacci retracement level after being ...
For active investors, the challenge is not typically finding a good stock or an entry point; it’s knowing where to get out. When a stock surges past its previous high, you enter what technical ...
Fibonacci retracement uses specific ratios to predict stock reversals. Key Fibonacci levels are 0%, 23.6%, 38.2%, 50%, 61.8%, and 100%. Investors use these levels for setting price goals and trading ...