Fibonacci Retracements (or Fib Retracements) are an important tool in any trader’s arsenal. It is usually drawn by by using a Fibonacci Retracement tool (available in most TA software including Investar). When you drag the Fib Retracement tool from the latest swing high (or low) to the latest swing low (or high) as shown below, horizontal lines are drawn which divide the height from the swing high to low into Fibonacci ratios (typically 0%, 38.2%, 50%, 61.8%, 100%). These horizontal lines are called Fibonacci retracements and can act as support/resistance levels in the future if the stockwere to reverse the trend.
In the latest Investar Beta, we now have a tool called Auto-Fibonacci Retracements tool, which you can enable by right clicking on the chart and selecting “Auto-SRT” and then “Enable Auto Fibonacci” as follows:
Once you enable it, it will automatically draw the Fibonacci Retracements based on the latest swing high and swing low on the given timeframe as follows.
You can even make a Fibonacci Retracement permanent by right clicking and clicking “Make Permanent” as follows. This will make the retracements permanent as if you have manually drawn it and it will stay even after you “Disable Auto Fibonacci Retracements”.
Thus, as you can see, if you are using Fibonacci Retracements, this Auto-Fibonacci Retracement tool can really help you to save a lot of time.
We hope you like this tool and would love to hear your feedback in the comments below.