How to Use Fibonacci Retracements to Find ETF Entry Points

A growing number of traders are looking to technical analysis tools to help them trade the ETF universe, which now extends to almost every financial niche imaginable. The Fibonacci Retracement tool is available on most charting platforms and can help traders find entry points in ETFs. Like any indicator, it shouldn’t be used in isolation, but it can be used as part of a trend-following strategy to find prices to buy at during a pullback [see ETF Technical Trading FAQ]. What Is the Fibonacci Retracement Tool? There are mathematical relationships between a trending wave and the pullback that follows it. The mathematics are based on the “golden ratio” and Fibonacci numbers that show the proportionality of one price wave to another. Such relationships are found in how we perceive beauty, how galaxies form, and how prices in financial market oscillate [see How To Swing Trade ETFs]. The Fibonacci Retracement tool [...] Click here to read the original article on ETFdb.com. Related Posts: ETFs: The $10 Billion Club November ETF Stats: Small Step Back Alternatives To The 20 Most Popular ETFs Free ETF Trading: Comparing All The Options ETF Moneymakers: Some Surprising Stats