Fibonacci Retracement is a popular charting function employed by people who trade stocks, Forex and futures.
When they first starting being used is not clear, but they are so popular now that a trader would be remiss to not use them.
Fibonacci trading can be, and is, used for all time frames, including day trading, swing trading and investing.
The Fibonacci retracement numbers are rooted in a well-known mathematical sequence of numbers that originated in India, but in trading they are employed for measuring the percentage that a market retraces against an initial impulse, or trend.
These retracement levels are critical to know because they help determine where a trader may want to enter a market back in the direction of an original trend, so they can obey the old adage to buy low and sell high.
