Fibonacci Retracement Settings and Example of Fibonacci Retracement Indicator on Stock Indices Charts

What is Fibonacci Retracement?

Fibonacci Retracement Levels indicator is a indices trading tool used by many stock indices traders to spot stock indices price retracements also known as stock indices price pullback.

Fibonacci Retracement Levels is a type of line study used in indices trading to predict and calculate these stock indices price retracement levels.

Fibonacci Retracement Levels indicator is placed directly on the stock indices chart within the indices trading platform provided by your stock indices trading broker, This Fibonacci Retracement Levels indicator will then automatically calculate these retracement stock indices price pullback levels on the stock indices chart.

What are the Fibonacci Retracement Levels? - What is Fibonacci Retracement?

• 23.6% Fibonacci Retracement Levels
• 38.2% Fibonacci Retracement Levels
• 50.0% Fibonacci Retracement Levels
• 61.8% Fibonacci Retracement Levels

38.2% and 50.0% Fibonacci Retracement Levels are the most used and most of the time this is where the stock indices price retracement will reach. With 38.2% Fibonacci Retracement Level being the most popular and most widely used retracement level in indices trading.

61.8% Fibonacci Retracement Level is also commonly used to set stop losses for trades opened using this indices trading retracement strategy.

This Fibonacci Retracement Levels tool is drawn in the direction of the indices trend as shown in the two examples below.

What are Fibonacci Retracement Levels?

Fibonacci Retracement Levels on Upward Indices Trend - What are Fibonacci Retracement Levels?

What are Fibonacci Retracement Levels?

Fibonacci Retracement Levels on Downward Indices Trend - What are Fibonacci Retracement Levels?