Most people involved in the financial markets have probably heard of Fibonacci retracements, or at least the general term Fibonaccis. But Fibonaccis can be a lot like modern art, Bitcoin, or CrossFit; it sounds cool but they don’t necessarily understand it. I mean try saying it out loud – fih-boh-nah-chee – see? Fun.
Others may have even drawn a few on their charts to help identify upcoming support but still don’t quite know how to read it. We’ll take a look at how it’s done and why it works, but we’ll also take it a step further and use multiple drawings on the same chart to increase the probabilities of finding the right levels.