The Fib Retracement tool includes the ability to set 24 different Fibonacci levels (including the 0% and the 100% levels that are defined by the two extremes of the trend line that is originally drawn). Values between 0 and 1 are internal retracement levels.
What is the Fibonacci retracement tool?
The Fibonacci retracement tool plots percentage retracement lines based upon the mathematical relationship within the Fibonacci sequence. These retracement levels provide support and resistance levels that can be used to target price objectives. Fibonacci Retracements are displayed by first drawing a trend line between two extreme points.
What is a retracement pattern?
Retracement is a popular technical tool for investors to determine the Fibonacci levels, at which an uptrend or downtrend is likely to rebound or reverse. The retracement pattern is created using the Fibonacci numbers, introduced by Italy-based mathematician Leonardo Fibonacci in the 13th century.
What does a level retracement do?
Extends levels' lines indefinitely to the right. Reverses the direction of the Fib Retracement (reflects it vertically). Sets the level value text position along the level. You can change the font size of labels. Toggles the level's price absolute or percent value visibility beside the level.
