Fibonacci Retracement: Simplified

Ideal tool for your successful commodity, currency and futures trading

The Fibonacci Retracement is probably the most heavily used Fibonacci tool in the toolset. You will find Fibonacci Retracements as a solid tool in identifying key support and resistance areas.

If prices have fallen from a recent swing high down to a swing low, the expectation is that price should retrace distance, high to low, by a ratio of the Fibonacci sequence.

In this book, I will show you examples of how potential opportunities when price retraces on and beyond 100% by following another set of Fibonacci ratios:

• 61.8
• 100%
• 161.8%

I use the other primarily as confirmation levels. So let’s take a look at some examples of Fibonacci Retracements in use.