Vantage FX UK (www.vantagefx.co.uk) show how Fibonacci Retracements can be used on different time-frames to give greater insight into the movements of a currency pair.
Fibonacci Retracements
Part two of the Fibonacci series begins with a look at Fibonacci Retracements on a long-term GBP/USD chart, going through the 1990s all the way up to the present day. After plotting Fibonacci Retracements on two separate drops over fifteen years apart we can see that, in particular, the 38.2% levels, are actually very close to each other, giving great insight into long-term support/resistance levels. Moving in to a shorter-term chart we look at how it can sometimes be worth trying Retracements on different movements on a chart, in order to get support/resistance levels closer to the current price.
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