how goes it?

[garyshaz]

new to fibonacci, and interested to see how many of you swear by this methodology!

 

[CharlesTrader]

new to fibonacci, and interested to see how many of you swear by this methodology!

Don't swear by Fibonacci, but I do use it from time to time as a tool for potential swing trades. When stocks make a new high, they will, many times, retrace 50 to 76% between the most recent low and most recent high before continuing their advance. This is usually a good setup for a swing trade opportunity.

The best trades will not retrace below the 76% retracement price, and this price can be used as a stop loss point. See the attachment for BEBE as an example.

Charles