How effective is Fibonacci Retracement tool while doing Technical Analysis of shares and stocks?
If in a given rally, there is a retracement which touches 0.382 level or 0.5 level and bounces back the share prices are supposed to go up further and if it breaks the 0.5 level the trend is supposed to have reversed. These are the basic rules of Fibonacci Retracement applied to Technical Analysis of Shares and Stocks.