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Fibonacci Retracement

Known for Golden Ratio In Trading

Table of content

General Information
Characteristics
Facts

Application
Technical Details
Usage
Evaluation
Performance Metrics
Alternatives
FAQ

General Information

Indicator Type 📊

The category or classification of the trading indicator based on its primary function and analysis method.

Price-Based

Fibonacci Retracement is a Price-Based type indicator. Analyzes raw price data to identify trends and patterns, fundamental for technical analysis Click to see all.
Asset Class 💰

Specifies the financial instruments for which the indicator is most commonly used

Stocks

The asset classes Fibonacci Retracement is typically used for are Stocks. Indicators optimized for analyzing and predicting stock price movements in equity markets. Click to see all.

Forex

The asset classes Fibonacci Retracement is typically used for are Forex. Indicators optimized for currency pair trading in the foreign exchange market. Click to see all.

Commodities

The asset classes Fibonacci Retracement is typically used for are Commodities. Trading indicators optimized for commodity markets like oil, gold, and agricultural products. Click to see all.
Made In 🌍

The country or origin of the trading indicator

Ancient Times

Fibonacci Retracement was developed in Ancient Times. Trading indicators with roots in historical trading practices

Characteristics

Lagging or Leading 🏁

Indicates whether the trading indicator is a lagging or leading type, reflecting its predictive nature.

Leading

Fibonacci Retracement is a Leading indicator. Indicators that predict future price movements Click to see all.
Complexity Level 🧑

Indicates the level of expertise required to effectively use the indicator

Intermediate

The complexity level of Fibonacci Retracement is Intermediate. Indicators balancing complexity and usability for traders with some experience. Click to see all.
Popularity 🏆

Indicates how widely used and recognized the indicator is in the trading community

High

The popularity of Fibonacci Retracement among traders is considered High. Widely used and trusted indicators in the trading community

Facts

Interesting Fact 💡

An intriguing or lesser-known fact about the trading indicator

Based on the Fibonacci sequence found in nature
Sarcastic Fact 😉

A humorous or ironic observation about the trading indicator

Traders use it because it sounds smart at cocktail parties

Application

Timeframe 🕑

The time intervals or periods for which the trading indicator is most effective or commonly used.

Daily

Fibonacci Retracement is most effective for Daily timeframes. Indicators optimized for daily chart analysis, suitable for swing and position traders.

Weekly

Fibonacci Retracement is most effective for Weekly timeframes. Indicators optimized for weekly chart analysis, balancing short-term noise and long-term trends.

Technical Details

Calculation Method 🧮

The mathematical or analytical approach used to compute the trading indicator's values.

Price-Based

Fibonacci Retracement uses the Price-Based calculation method. Indicators focusing on price movements and patterns for market analysis. Click to see all.
Signal Generation 📊

Describes the methods by which the indicator produces trading signals

Thresholds

Fibonacci Retracement generates trading signals through Thresholds. Indicators that generate signals when certain predefined levels or conditions are met
Customization Options 🔧

Lists the parameters that can be adjusted to fine-tune the indicator

Levels

Fibonacci Retracement offers customization options for Levels. Enables customization of key price or indicator levels Click to see all.

Usage

For whom 👥

The target audience or user group for the trading indicator

Swing Traders

Fibonacci Retracement is designed for Swing Traders. Identifies medium-term trends and potential reversal points, ideal for multi-day positions Click to see all.
Purpose 📈

The primary purpose or application of the trading indicator

Support/Resistance Levels

Fibonacci Retracement is primarily used for Support/Resistance Levels. Indicators that determine key price areas of market significance Click to see all.

Evaluation

Pros 👍

Advantages of using the trading indicator

Based On Natural Number Sequence

Widely Used For Support/Resistance
Cons 👎

Disadvantages or limitations of the trading indicator

Subjective In Application

Describes indicators that rely significantly on trader interpretation rather than clear-cut signals. Click to see all.

Requires Context

Performance Metrics

Reliability Score 💯

A score indicating the overall reliability of the trading indicator

7

The reliability score of Fibonacci Retracement is 7 out of 10. Click to see all.
Ease of Use Score 💻

A score representing how user-friendly and intuitive the trading indicator is

6.5

The ease of use score for Fibonacci Retracement is 6.5 out of 10. Click to see all.
Versatility Score 🔀

A score indicating the adaptability of the trading indicator across different markets and timeframes

8

The versatility score of Fibonacci Retracement is 8 out of 10. Click to see all.
Customization Score 🔧

A score representing the degree of customization available for the trading indicator

7.5

The customization score for Fibonacci Retracement is 7.5 out of 10.
Score ⭐

The overall score of the trading indicator based on various performance metrics

7.3

The overall score of Fibonacci Retracement is 7.3 out of 10. Click to see all.

Alternatives to Fibonacci Retracement

Elder-Ray Index

Known for Combining Trend And Momentum

💯 is more reliable than Fibonacci Retracement

⭐ is rated higher overall than Fibonacci Retracement

Commodity Channel Index (CCI)

Known for Identifying Cyclical Trends

💻 is easier to use than Fibonacci Retracement

⭐ is rated higher overall than Fibonacci Retracement

Known for Identifying Potential Reversal Points

💯 is more reliable than Fibonacci Retracement

💻 is easier to use than Fibonacci Retracement

🔀 is more versatile than Fibonacci Retracement

⭐ is rated higher overall than Fibonacci Retracement

Directional Movement Index (DMI)

Known for Strength Of Price Movement

💯 is more reliable than Fibonacci Retracement

💻 is easier to use than Fibonacci Retracement

⭐ is rated higher overall than Fibonacci Retracement

Momentum Indicator

Known for Price Velocity

💻 is easier to use than Fibonacci Retracement

Elder Impulse System

Known for Combining Trend And Momentum

💻 is easier to use than Fibonacci Retracement

Percentage Price Oscillator (PPO)

Known for Relative Strength Measurement

💻 is easier to use than Fibonacci Retracement

🔀 is more versatile than Fibonacci Retracement

⭐ is rated higher overall than Fibonacci Retracement

Zigzag Indicator

Known for Filtering Market Noise

🔧 is more customizable than Fibonacci Retracement

Chande Momentum Oscillator (CMO)

Known for Momentum Measurement

💯 is more reliable than Fibonacci Retracement

💻 is easier to use than Fibonacci Retracement

Money Flow Index (MFI)

Known for Volume And Price Movements

💯 is more reliable than Fibonacci Retracement

💻 is easier to use than Fibonacci Retracement

FAQ about Fibonacci Retracement