Forex trading can be an extremely lucrative and satisfying investment strategy, but the key to success is understanding which indicators are most helpful in revealing potential high-profit opportunities. Fibonacci retracements are one tool traders use to identify areas of support or resistance on a chart, measure possible risks associated with risky entries into trades, and advise when it’s best to exit positions that may not have yielded lucrative returns.

In this article, we’ll provide an overview of using Fibonacci steppings for forex purposes, offering readers technical guidance and tips from experienced foreign exchange investors.

Understand the basics of Fibonacci retracements – what they are and how to use them

Fibonacci retracements are a technical analysis tool used to identify potential areas of support and resistance in financial markets. These levels are based on the mathematical ratios derived from the Fibonacci sequence, a series of numbers where each is the sum …