Stock Market: The First Step
By Jobaaj Learnings
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The retracement level forecast is a technique using which one can identify up to which level retracement can happen. These retracement levels provide a good opportunity for the traders to enter new positions in the direction of the trend.
Think of a situation where you wanted to buy a particular stock but have not been able to do so because of a sharp run-up in the stock. In such a situation the most prudent action to take would be to wait for a retracement in the stock.
By plotting the Fibonacci retracement levels the trader can identify these retracement levels, and therefore position himself for an opportunity to enter the trade. However please note like any indicator, use the Fibonacci retracement as a confirmation tool & not a complete trading tool.
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