Fibonacci Retracement
A Fibonacci retracement is a common technical analysis pattern based on the golden ratio. When a stock price moves X dollars in one direction, then turns around and moves Y dollars in the previous direction, we say that there was a retracement of $Y. Many traders look for retracements where the X/Y is Phi, the golden ratio. This is called a Fibonacci retracement because the ratio was the same as the ratio between two adjacent Fibonacci numbers.
This type of analysis is not limited to Phi. Some traders look for a retracement with the square of that ratio. This is the same as the ratio between one Fibonacci number and the number 2 positions further in the Fibonacci series. Other common numbers are the square root of that ratio and one half.
Trade-Ideas automates the process of finding Fibonacci retracements. The Fibonacci algorithms are not that hard. And there are many software tools, some available for free on the web, which will compute these values for you if you input the highest and lowest recent prices for a stock. The time-consuming part is finding all the support and resistance levels, entering these values into the Fibonacci calculator, then watching for the price of each stock to hit one of these levels. The Trade-Ideas alerts server does all of that automatically.
Alert Types
We offer the following alert types which are related to this topic. Click on the icon for a detailed description of the alert, or click on the "more" link for additional examples of each type of alert.
| Type | Recent Examples | More Examples | ||
|---|---|---|---|---|
| Time (NY) | Symbol | Message | ||
 | Nov 6th, 7:54:35 PM | PLD | Fibonacci buy signal. Retraced 38.1966% from resistance (11.61) back to support (11.47). Started 4 hours 43 minutes ago. | more |
 | Nov 6th, 7:56:42 PM | DKS | Fibonacci sell signal. Retraced 38.1966% from support (24.60) back to resistance (24.83). Started 6 hours 35 minutes ago. | more |
 | Nov 6th, 7:54:35 PM | PLD | Fibonacci buy signal. Retraced 50% from resistance (11.61) back to support (11.47). Started 4 hours 43 minutes ago. | more |
 | Nov 6th, 7:58:56 PM | GGB | Fibonacci sell signal. Retraced 50% from support (15.95) back to resistance (16.24). Started 8 hours 5 minutes ago. | more |
 | Nov 6th, 7:55:55 PM | LINE | Fibonacci buy signal. Retraced 61.8034% from resistance (24.13) back to support (24.03). Started 4 hours 54 minutes ago. | more |
 | Nov 6th, 7:56:48 PM | NVLS | Fibonacci sell signal. Retraced 61.8034% from support (20.36) back to resistance (20.55). Started 6 hours 7 minutes ago. | more |
 | Nov 6th, 7:49:51 PM | UCBH | Fibonacci buy signal. Retraced 78.6151% from resistance (0.84) back to support (0.8279). Started 4 hours 5 minutes ago. | more |
 | Nov 6th, 7:59:59 PM | PARD | Fibonacci sell signal. Retraced 78.6151% from support (7.92) back to resistance (8.09). Started 7 hours 56 minutes ago. | more |
