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4 Keys to Profitable Forex Trend Trading: Unlocking the Profit Potential of Trending Currency Pairs by Christopher Weaver

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Key 3. Fibonacci Retracement Levels

In this chapter, we are going to look at the Fibonacci number sequence and how we can apply it to our charts to identify key turning points in the price action. It would be very easy to get caught up in the interesting, but unnecessary, facts about the unique characteristics of the Fibonacci number sequence. We will avoid that. Instead, I will remark that, while the Fibonacci number sequence can be used in several ways, we are going to focus only on its retracement aspect.

The Theory

Primary strength: reveals hidden support/resistance levels

Fibonacci levels reveal hidden support and resistance levels by measuring the retracement of the price action after a definite upward or downward price swing. These ...

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