Fibonacci ratios, discovered by Leonardo Fibonacci, are used in technical analysis to identify price resistance and support levels and turning points in price trends. Elliot Wave Theory uses Fibonacci ratios to identify inflection points in five-wave patterns. Fibonacci ratios are also used to identify retracement levels. While some traders are zealous supporters of these methods, […]
Profitability ratios are used to predict the likelihood of an investment being profitable. The profitability index ranks investments based on their earning capacity, with a ratio of less than one indicating a poor outlook. Discounted cash flow is used to determine whether an investment is sensible, considering cash inflow and present value. Return indices are […]
