Where Does Fibonacci Retracement Go?

Fibonacci retracements can be used to place entry orders, determine stop-loss levels, or set price targets. For example, a trader may see a stock moving higher. After a move up, it retraces to the 61.8% level. Then, it starts to go up again.

How do you place the Fibonacci retracement tool?

Start grid placement by zooming out to the weekly pattern and finding the longest continuous uptrend or downtrend. Place a Fibonacci grid from low to high in an uptrend and high to low in a downtrend. Set the grid to display the .

Is Fibonacci retracement a good strategy?

The Bottom Line. Fibonacci retracement levels often indicate reversal points with uncanny accuracy. However, they are harder to trade than they look in retrospect. These levels are best used as a tool within a broader strategy.