This sequence also applies to trading and investing charts and is called the Fibonacci Retracement indicator. The Fibonacci Retracement indicator is used to help identify possible support and resistance levels for any market. Let’s look at an example with the South African JSE ALSI 40. Once you draw the Swing High and Swing Low on the JSE ALSI 40, the Fibonacci lines will be plotted on the chart. That’s a good introduction and a different way for you to trade and use the Fibonacci Retracement tool with your trading in 2024.
