Fibonacci Numbers

Another great tool that we can use is the Fibonacci retracement. In this video we will be discussing why the Fibonacci numbers are used and how the ratios between these numbers can give us accurate areas of potential reversal. When we look for trade ideas the Fibonacci tool can give us great retracement levels where price may react from and this is due to the way in which these numbers are naturally occurring in all of nature and the amount of people that look to enter trades following this approach. However, we aren’t just looking to trade these ratios in every area of the chart but instead when we tie it in with our areas of support and resistance and other candlestick confirmations then it can really help to refine an area down and allow us to remain patient until we see enough of a reason to enter a position.