Fibonacci offers a perfect fit with forex strategies, locating hidden support and resistance levels that translate into high odds entry and exit prices.

Fibonacci retracement levels are a strategy that some traders use to analyze a stock’s resistance levels. You can use many different retracement levels but one of the most common is 61.8%.

How This Relates to Investing in Stocks Technical analysts use three Fibonacci applications when looking at stock performance. Analysts use these equations to predict stock market prices.

Fibonacci Expansions plot possible levels of support and resistance. They are created by tracking primary trending moves and their retracements. Traders can use Fibonacci Expansions to set ...

Find out more about Fibonacci retracement levels and how some forex traders use them profitably in their trading strategies.

We can still clearly see the Fibonacci Price Amplitude Arc resistance level acting as a ceiling for price. We can also see the two recent peaks that align with this Fibonacci Price Amplitude Arc.

Our weekly SPY chart is showing that the Fibonacci Price Amplitude Arc resistance level is acting as a ceiling for price and a downward trend in the Momentum indicator.

The way in which Fibonacci numbers can be used for analysing stocks goes much beyond retracements and time-lines. There are some lesser known and less widely used tools such as the Fibonacci fans ...