Fibonacci Retracement

A technical indicator used to identify support and resistance.

Detailed Definition

Fibonacci retracements are popular tools that traders use to identify potential support and resistance levels. The indicator is created by taking two extreme points on a chart and dividing the vertical distance by the key Fibonacci ratios.

Related in General Trading

Price Action

The movement of a security's price over time.

Margin

The money borrowed to purchase an investment.

Arbitrage

Profiting from price differences across different markets.