Looking for Support or Resistance? Fibonacci Levels Could Help

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Stocks often pullback after rallying, or bounce following a decline. Traders must often rely on their own judgement to determine when such a countertrend move is complete. However the Fibonacci retracement tools available on TradeStation’s desktop platform can assist in the analysis. These mathematically calculated levels often become support or resistance. Breaking well-established price lines can also reveal a change in trend.

This instructional video explains Fibonacci levels, their calculation and use in technical analysis of the stock market. It also covers how they can be added to price charts and customized to fit individual trading styles.

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