Fibonacci Number and Ratio Analysis
10.4.2 Calculating potential resistance via Fibonacci
upside retracement Levels
Assume that the significant peak and trough of an observed retracement range are
point A and point B, respectively. Assume that the peak at point A is at the price
level of $78 and that the trough at point B is at $48. Refer to Figure 10.17 as a
visualization guide.Figure 10.17 Fibonacci Upside Retracements within an Observed Price Range.Figure 10.18 Downside Retracement on the Daily EURUSD Chart.
Source: MetaTrader 4.