FOREX FOBONACCI RETRACEMENTS
The Fibonacci Retracements are levels of support and resistance created after a significant move of in direction in the forex market.
Fibonacci Retracement levels of support on the forex chart are often encountered during a correction of a significant upward move in the forex price. These lines are displayed at 0.0%, 23.6%, 38.2%, 50%, 61.8% and 100%.
Fibonacci levels can also be drawn upwards to determine the next leg of the move after a correction in the forex market. These levels are 161.8%, 261.8%, and 423.6%.
Fibonacci Levels can easily be drawn by connecting any significant peak and trough on a forex chart.