Fibonacci Retracement
Most of the markets move according to rhythms. An instinct wave that explains an important market trend will definitely have accurate wave prior to the period when next impulses reach new territory. The general approach to work with corrections is related to the size of correction to the percentage of the earlier move of an impulsive market. IN connection with the 3 wave designs, the retracement shows how far a correct wave can move before the birth of wave C. This retracement is one among the four mostly used studies for guessing the resistance and support level for a market. A vertical line is madeon the chart between the extreme cost values, one low and one high.