Fibonacci
Retracements/Extensions are displayed by first drawing a trend line
between two extreme points. After selecting Fibonacci Retracement tool
from Draw toolbar, a series of up to nine horizontal lines will be drawn
at the Fibonacci levels of 0.0%, 23.6%, 38.2%, 50.0%, 61.8%, 100%, 161.8%,
261.8% and 423.6%. After a significant move (up or down), prices will
often rebound and retrace a significant portion of the original move. As
the price retraces, support and resistance levels will often occur near
the Fibonacci Retracement levels.
Fibonacci retracement/extension
tool works in 4 different modes depending on the direction of trend line
drawn:
NE - gives (old-style)
retracement in up trend
SE - gives retracement
in down trend
NW - gives extension
in up trend
SW - gives extension
in down trend
A controlling trend line
drawn with dotted style can be used to delete Fibonacci retracement study
at once using right mouse button menu.
