How to Use Fibonacci Extensions to Isolate Turning Points in ETFs

By: ETFdb
With ETFs available for almost every financial niche imaginable, more and more traders are looking to technical analysis tools to help them trade the ETF universe. The Fibonacci Extension tool is available on most trading platforms and can help ETF traders establish profit targets and isolate potential price reversal areas. Like any indicator, it shouldn’t be used in isolation, but is a valuable tool for providing an overall context of where an ETF may be going [Download 101 ETF Lessons Every Financial Advisor Should Learn]. Fibonacci Extension Tool There is often a mathematical relationship between one price wave and the waves that follow it. This relationship is based on the ”golden ratio” and related Fibonacci numbers that are found throughout the natural world including galaxy formations, plant growth and even man-made financial markets. The Fibonacci Extension indicator plots the most common mathematical relationships, producing a predictive technical indicator [see How To Swing [...] Click here to read the original article on ETFdb.com. Related Posts: Responding To Calls For ETF Regulation How to Beat the S&P 500 with Style ETFs Comparing Five Years of Alternative Weighting Methodologies Active ETFs That Beat The Market In 2013 13 Wild ETF Charts from 2013
With ETFs available for almost every financial niche imaginable, more and more traders are looking to technical analysis tools to help them trade the ETF universe. The Fibonacci Extension tool is available on most trading platforms and can help ETF traders establish profit targets and isolate potential price reversal areas. Like any indicator, it shouldn’t be used in isolation, but is a valuable tool for providing an overall context of where an ETF may be going [Download 101 ETF Lessons Every Financial Advisor Should Learn]. Fibonacci Extension Tool There is often a mathematical relationship between one price wave and the waves that follow it. This relationship is based on the  ”golden ratio” and related Fibonacci numbers that are found throughout the natural world including galaxy formations, plant growth and even man-made financial markets. The Fibonacci Extension indicator plots the most common mathematical relationships, producing a predictive technical indicator [see How To Swing [...]

Click here to read the original article on ETFdb.com.

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