Applying Fibonacci Retracements

How do I apply the Fibonacci Retracements tool in eSignal?

The Fibonacci Retracements tool is used to measure the amount that the market has retraced compared to the overall market movement.  This tool is uses ratios which are mathematical in nature, derived from the Fibonacci sequence, developed by Leonardo Fibonacci around 1180 ACE.  Fibonacci Retracements give you support and resistance areas along with general target price areas.

To apply the Fibonacci Retracements tool on a chart, click on the icon labeled FIB RET on the Line Toolbar:

 

Fibonacci Retracements are commonly drawn from the end of Wave 2 to the end of Wave 3 to find a target for the Wave 4 retracement:



To configure the Fibonacci Retracements, right-click the Fibonacci Retracements (FIB RET) icon. This will open the Fibonacci Retracements properties box::



The On/Off buttons indicate whether or not the corresponding Fibonacci Retracement value will be included when you draw the Fibonacci Retracements.

The Value number boxes indicate what Fibonacci ratios are used. If the corresponding On/Off button is toggled On, then that retracement level will be included when you draw the Fibonacci Retracements.

The Color selection list allow you to change the color for each Fibonacci ratio.

To remove the Fibonacci Retracements, right-click on any Fibonacci Retracements tool displayed on the chart that you want to erase. When the Fibonacci Retracements properties box appears, press the Remove button.