The Handbook of Technical Analysis + Test Bank_ The Practitioner\'s Comprehensive Guide to Technical Analysis ( PDFDrive )

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Figure 10.55 clearly depicts two‐leg Fibonacci clusters on the daily USDCAD
chart, with retracement measured across from ranges AB and CB.

10.16.3 invalidating the Fibonacci retracement Levels

It must be pointed out that should price subsequently extend beyond the largest
retracement range, all Fibonacci retracement levels within the area of observation
will be invalidated. New retracement levels need to be recalculated once a larger

Figure 10.54 Fibonacci Retracement Clusters across the Combined Price Range AD
and CD.

Figure 10.55 Fibonacci Retracement Clusters across the Combined Price Range AB
and CB on the Daily USDCAD Chart.
Source: MetaTrader 4