Forum Archive Index - November 2001

[Phaedrus <Phaedrus@techemail.com>]

Peter,
       Wow. I don't think I have ever seen a better example of such accurate 
retracements. The low was right on the button at exactly 50% retracement of the 
uptrend. The 23.6% and the 38.2% lines also mark significant support/resistance 
levels.
  Here are a few notes that others might find helpful:-
Fibonacci Retracements are displayed by first drawing a trendline between two 
extreme points (i.e., a significant trough and peak). A series of horizontal 
lines are then drawn at the Fibonacci levels of 0.0%, 23.6%, 38.2%, 50.0%, 
61.8%, 100%.  After a significant move (either up or down), prices will often 
rebound and retrace a significant portion of the original move (most commonly 
50%). As the price retraces, support and resistance levels will often occur at 
or near the Fibonacci Retracement levels.
               Phaedrus.

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