the hAnDbook oF teChnICAl AnAlysIs
10.4 Fibonacci (Φ‐Based) Percentage Retracement Levels within an Observed Price Range
Once a significant peak A and trough B are identified in price, the observed price
range between A and B may be divided into various percentage or ratio intervals
as a way of measuring the amount of price retracement from the peak A. There
are various ways to divide any price range in percentage or ratio terms. We could,
Figure 10.13 Upside Projection from a Higher Significant Trough.
Figure 10.14 Downside Projection from a Lower Significant Peak.
