Today in this video I will tell you all those complex topics in simple language which you think Fibonacci Retracement I don’t know what is it how complex it is and how many things we can make but I will explain it to you in just 5 minutes it doesn’t take me even 5 minutes to start I want to tell you Fibonacci Retracement I want to tell you its concept and you should understand the concept do we need to go back to the history who invented those natural numbers why are there natural ratios now should I talk on the history or should I just give you an explanation about it you will feel that time wasted, let’s talk directly on the concept why do we use Fibonacci see what does retracement mean what does Fibonacci and retracement mean so okay you must have understood Fibonacci is a famous person who has given you these numbers and ratios and said that these numbers are natural and the whole nature follows these numbers so you can say that these numbers also follow in the stock market of support and resistance you can say, basically at those levels By going, the price can react, then you get important for support and resistance from Fibonacci. This is what happened concept number one concept number two what is retracement, what is retracement is that the price always moves in the trend, so if the trend is going on now, then the market will move like this, otherwise you know that if the trend is going on, then the price will go up, then there will be retracement, this is called retracement. Now it will go up again, then it will retrace, then it will go up again, then it will retrace, then it will go up again. The trend is going on now but how much will be the retracement, whenever there is a question, then it is important to know the solution to that question that how much retracement will the price take or we can calculate ourselves from support resistance that at which level there is important support, here with Fibonacci retracement we will identify the support when the up trend is going on and when the down trend is going on then there will also be a retracement of the price, the price will fall down and then rise up, this increase is called retracement. After that it will fall again, then rise, then fall again rise and in this way downtrend happens so it is in both uptrend and downtrend we have to identify how much retracement can happen what will be the benefit from it it is important to know that if the price is going in uptrend right now and if retracement happens then suppose you could not buy it in the beginning which was a very good stock now you go to buy it again then when retracement happens you can buy it again there is a chance to buy and after that the price goes up it again gets resistance the price will retrace downwards how much retracement will happen we can find out with the help of Fibonacci the necessary level will tell us similarly if the price is falling suppose you are trading suppose you have shorted any of your positions then you hit a shot then you fell now you see you fell again you want to take entry again because you missed the entry okay you have come to know how much the rate will rise after that the price starts falling and after that you hit the entry again and boom, So this is what we have to understand so whenever there is a question a curiosity comes, now there is a solution the curiosity was our retracement and retracement now we will learn from Fibonacci retracement and when you use this software and login to your demat account, what do you see, some charts will open, you can open any chat, I will also show you in Fibonacci before ratio a very beginners question comes to many people who ask me, sir, I have understood it from the tool here, you can see Fibonacci retracement here first of all Fibonacci retracement here the fib you are seeing is Fibonacci sir apply it from top to bottom or apply it from bottom to top it means people get confused on this that from where to apply it becomes like this what does it mean now we explain you see you have to answer a very simple question if the downtrend is going on then where will the price go from top to bottom? Then how to plot Fibonacci, you take Fibonacci from the top, that means we will take the high from the shadow, here is our high and we would have taken a take here and we would have skipped it, it would have to be skipped, so you click twice, which one did you come to, it is not important for you which one is important, I will show you from top to bottom, when the price is going down, you had a high, you brought from high to low, okay, so you brought the price from high to low, I brought it exactly from high to low, if your uptrend is going from bottom to top then that’s it,