Fibonacci retracement
/fɪˈbɒnətʃi rɪˈtreɪsmənt/
horizontal lines on a chart at key Fibonacci ratios indicating where support or resistance may occur
Fibonacci retracement in a sentence
“The stock retraced to the 61.8% Fibonacci level before resuming its uptrend.”
Origin of Fibonacci retracement
Named after Leonardo Fibonacci (c.1170–1250) whose sequence appears throughout nature and finance
Related Words
overbought
describes a security that has risen sharply and may be due for a price correction
volume
the total number of shares or contracts traded for a security during a given period
support level
a price point where buying interest is strong enough to prevent further decline
resistance level
a price point where selling pressure is strong enough to prevent further advance
moving average
a calculation that smooths price data by creating a constantly updated average price over a defined period
candlestick
a chart element showing the open, close, high, and low prices for a period, resembling a candle