Fibonacci Clusters Definition A Fibonacci cluster represents a convergence of Fibonacci retracements or extension levels, based on various price swings, around a specific price area. The underlying theory of a cluster is that if multiple Fibonacci levels are aligned near…
Trend-Based Fibonacci Extensions Definition Trend-Based Fibonacci Extensions are a vital tool in the trader’s toolkit, used to determine profit targets or predict how far a price may travel after a pullback has concluded. These extensions, based on Fibonacci ratios, are…
Fibonacci Retracement Levels Definition Fibonacci retracement levels, rooted in the famous Fibonacci sequence, are a set of horizontal lines that signify potential support and resistance points in the trading world. These levels are widely used by traders to predict where…
What are Fibonacci Numbers and Lines? Fibonacci numbers are used to create technical indicators through a mathematical sequence developed by the Italian mathematician known as "Fibonacci" in the 13th century. The sequence begins with zero and one, and each subsequent…
Divergences Divergence Definition Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, or is moving contrary to other data. Divergence serves as a warning that the current…
Introduction to Volatility-Based Indicators Volatility-based indicators are an essential subset of tools within the realm of technical analysis. These tools focus on analyzing the fluctuations in market prices over a designated period of time. The concept of volatility is central…