Fibonacci Retracement

Fibonacci Retracements are displayed by drawing a trendline between two reference or extreme points on the chart (usually a trough and opposing peak). Next, a series of nine horizontal lines are drawn. The lines intersect the trendline between the two reference points at the Fibonacci levels of 0.0%, 23.6%, 38.2%, 50.0%, 61.8%, 100.0%, 161.8%, 261.8%, and 4236%. Some of the lines might not be visible, because of the scale limitations in the chart window.

When a price increases or decreases significantly, it will often retrace a significant portion. During retracements, support and resistance levels can be defined at or near the Fibonacci Retracement levels.

After a significant price move (either up or down), prices will often retrace a significant portion - if not all - of the original move. As prices retrace, support and resistance levels often occur at or near the Fibonacci Retracement levels.

When the lines are drawn, two "grab bars" are placed where the control line starts and ends. To change the position of the control line, click on the object to select it, position the cursor on either of the grab bars, and drag it to the desired location.

To move the Fibonacci Retracements, position the cursor in its center (the cursor changes to a hand). You can now drag it to a new position on the chart.