I have talked a couple times about the power of the Fibonacci tool, and how it allows you to measure the movement of a particular stock in relation to its previous trend.
I have really just become fascinated with it over a year ago, and now it is has become one of my staples when analyzing a stock chart.
Remember Fibonacci shows you indicators for when the stock has moved 38%, 50%, and 62% of the previous trend. It is also an efficient way to find trading ranges and other supports or resistance.
Over the past couple of day Gold has been on a steady downtrend, but has since then bounced off the 50% retracement to claim pretty much reclaim the loss. After looking at the chart, we also see the Gold seems to be repeating a trend, which is easy to predict.
Below is a video that we have constructed to show you are powerful the Fibonacci is and little secrets to really benefit off the tool. It also throws in a real-time analysis of Gold. A win-win for everybody.
