Home MarketXLS
Dashboard MarketXLS
Screener MarketXLS
Options Profit Calculator MarketXLS
Stock Ranks MarketXLS
Spreadsheet Builder MarketXLS
Documentation MarketXLS
Logout MarketXLS
Basics

Exploring Fibonacci Trading Strategies

Written by admin
Mon Jan 16 2023
Exploring Fibonacci Trading Strategies - MarketXLS
See how MarketXLS helps you take advantage in the markets.
Download Option Template →
Exploring Fibonacci Trading Strategies - MarketXLS

Exploring Fibonacci Trading Strategies

Fibonacci trading is a strategy backed by mathematics used in technical analysis for making informed trading decisions. It is based on the Fibonacci sequence used throughout history in architecture, music, and nature.

By combining basic technical analysis concepts with Fibonacci trading, traders can gain an edge over the market and make better risk-adjusted profits.

In this article, we will explore some of the popular Fibonacci trading strategies and how to use these strategies for technical analysis.

Understanding Fibonacci Trading

Fibonacci trading strategies are based on levels of support and resistance. These levels are derived from Fibonacci numbers, as they can be used to determine the trend of a period.

Fibonacci trading strategies are mainly used in Forex and stock markets to identify potential patterns in the financial markets. It can help you identify potential reversals and potential entry/exit points from a short or long position.

Fibonacci Retracement

Fibonacci retracement is one of the most popular Fibonacci trading strategies used to identify levels of support and resistance. The levels are calculated by looking at the length of a previous price trend.

For example, if the price of a currency pair has risen from 1.3050 to 1.3150 over the course of three days, a Fibonacci retracement of 0.6 would indicate that the price is likely to pullback towards 1.3150 before continuing in the direction of the trend.

Harmonic Patterns

Harmonic patterns are created by drawing three or more Fibonacci retracement levels. These patterns can be used to identify potential turning points in the market.

For example, a harmonic pattern may be used to identify a possible reversal in the price of a currency pair. The pattern can be used to determine potential entry/exit points and potential price targets.

Support and Resistance

Support and resistance levels can be used to identify potential turning points in the market. The levels are derived from Fibonacci retracement levels and can be used to project where the price might go in the future.

For example, if the price of a currency pair has been bouncing off of a Fibonacci retracement level at a certain price, it could indicate that the price is likely to continue in the same direction.

Risk Management

Risk management is an important aspect of trading and is essential when using Fibonacci trading strategies. Knowing when to enter and exit a trade can help you stay disciplined and maximize your profits.

A good risk management strategy includes setting stop loss strategies and price targets. This can help you limit losses and maximize profits.

Conclusion

Fibonacci trading strategies are useful tools for technical analysis. By combining the technical indicators, support and resistance levels, and harmonic patterns, you can gain an edge over the market.

When using Fibonacci trading strategies, risk management is essential. Setting the right stop loss and price targets can help you manage the risk and maximize profits.

If you are looking for an introduction to Elliott Wave Theory and other advanced technical analysis topics you may want to view this short video from MarketXLS. MarketXLS is a powerful research suite built into Microsoft Excel and Google Sheets. With various features such as real-time stock quotes, technical indicators, and powerful backtesting capabilities, MarketXLS can help you make better and more informed trading decisions.

Here are some templates that you can use to create your own models

Search for all Templates here: https://marketxls.com/templates/

Relevant blogs that you can read to learn more about the topic

Trading Using The Fibonacci Retracement Strategy
Elliott Wave Theory – A Brief Introduction

Interested in building, analyzing and managing Portfolios in Excel?
Download our Free Portfolio Template
I agree to the MarketXLS Terms and Conditions
Call: 1-877-778-8358
Ankur Mohan MarketXLS
I am so happy you are here. My name is Ankur and I am the founder/CEO of MarketXLS. Over the past four years, I have helped more than 2500 customers to implement their own investment research strategies and monitoring systems in Excel.
Implement “your own” investment strategies in Excel with thousands of MarketXLS functions and starter sheets.
Get started today
Search for a stock

Get Access to 1 Billion Usable Market data points IN YOUR EXCEL SHEETS WITH EASY TO USE EXCEL FUNCTIONS

Get started today

Top MarketXLS Rank stocks

PulteGroup Inc. logo

PulteGroup Inc.

52.62
 
USD
 
0.25
 
(0.48%)
82
Rank
Optionable: Yes
Market Cap: 11,760 M
Industry: Residential Construction
52 week range    
35.03   
   54.71
Moelis & Company Class A logo

Moelis & Company Class A

46.17
 
USD
 
0.53
 
(1.16%)
82
Rank
Optionable: Yes
Market Cap: 2,906 M
Industry: Asset Management
52 week range    
33.12   
   58.59
Group 1 Automotive Inc. logo

Group 1 Automotive Inc.

206.94
 
USD
 
0.50
 
(0.24%)
82
Rank
Optionable: Yes
Market Cap: 2,814 M
Industry: Auto & Truck Dealerships
52 week range    
136.16   
   212.18
Asbury Automotive Group Inc logo

Asbury Automotive Group Inc

214.84
 
USD
 
14.21
 
(7.08%)
81
Rank
Optionable: Yes
Market Cap: 4,184 M
Industry: Auto & Truck Dealerships
52 week range    
138.88   
   217.31
Rush Enterprises Inc. Class A Common Stock logo

Rush Enterprises Inc. Class A Common Stock

52.55
 
USD
 
-0.33
 
(-0.62%)
80
Rank
Optionable: Yes
Market Cap: 2,812 M
Industry: Auto & Truck Dealerships
52 week range    
42.72   
   55.06
Robert Half International Inc. logo

Robert Half International Inc.

85.20
 
USD
 
4.39
 
(5.43%)
80
Rank
Optionable: Yes
Market Cap: 8,582 M
Industry: Staffing & Outsourcing Services
52 week range    
65.40   
   125.77
El Pollo Loco Holdings Inc. logo

El Pollo Loco Holdings Inc.

11.84
 
USD
 
0.14
 
(1.20%)
80
Rank
Optionable: Yes
Market Cap: 427 M
Industry: Restaurants
52 week range    
8.15   
   13.97
Hibbett Sports Inc. logo

Hibbett Sports Inc.

66.13
 
USD
 
-0.97
 
(-1.45%)
80
Rank
Optionable: Yes
Market Cap: 856 M
Industry: Specialty Retail
52 week range    
39.58   
   75.38
Canadian Natural Resources Limited logo

Canadian Natural Resources Limited

62.13
 
USD
 
1.28
 
(2.10%)
80
Rank
Optionable: Yes
Market Cap: 67,031 M
Industry: Oil & Gas E&P
52 week range    
44.45   
   70.60
Target Corporation logo

Target Corporation

168.51
 
USD
 
1.48
 
(0.89%)
79
Rank
Optionable: Yes
Market Cap: 75,284 M
Industry: Discount Stores
52 week range    
137.16   
   254.87

More Features