How to spot potential reversals with fibonacci retracements.
In a downtrend, potential major trend reversal levels can be identified by drawing fib retracement lines from a significant low and connecting the low to the most recent significant high. The 61.8% retracement, 161.8% (Golden Ratio) extension and 261.8% extension are the areas most likely for a bottom & reversal to form.
A more detailed explanation on fibonacci trading can be found here.... How to Use Fibonacci for Trading
In a downtrend, potential major trend reversal levels can be identified by drawing fib retracement lines from a significant low and connecting the low to the most recent significant high. The 61.8% retracement, 161.8% (Golden Ratio) extension and 261.8% extension are the areas most likely for a bottom & reversal to form.
A more detailed explanation on fibonacci trading can be found here.... How to Use Fibonacci for Trading