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Fibonacci Number and Ratio Analysis

(Note: We always subtract the trough from the peak, regardless of whether

it is for a downside or upside retracement calculation, as the price range must

always be a positive value.)

The 23.6 percent upside retracement level is:

=+ ×

=+ ×

Trough Price Range Retracement Ratio

B Price Range 0 236

( )

(. )

==+×

=

$ ($. )

$.

48 30 0 236

55 08

Figure 10.21 Upside Retracement on the Daily XAUUSD Chart.

Source: MetaTrader 4

Figure 10.22 Upside Retracement on the Daily MMM Chart.

Courtesy of Stockcharts.com