Personally, I think that the levels of at least a basic understanding of the key levels of analysis and Fibonacci watch out for, any Forex trader should be in my opinion are 50% and 61,8%. Draw these two levels, is the idea of what the objectives of price may be that if you always aim should be to trade is any resolution of the price.
For example, if the price has moved 1000 semi (from the lowest point, the high point) and repentance is strong enough to back down, so it would retracement 50%, ie 500 points, a good place to end your location.
However, Some traders want to wait before entering a new position in the direction of the first trend will affect these retracement levels. Now this is where Fibonacci analysis can be a bit’ hit and miss.
While you will find many cases where the price bounced well away from the retracement level 50% the 61,8% and that the trend has continued, unfortunately, there are, as many cases in which the price is ignored and these levels went up to you.
To illustrate this point, you need only watch the current move the GBP / USD. As you below to see the couple moved to a low point in 1.6339 all the way from diagram 1.7044.
Although the 61,8% retracement levels of the 50% the award were made to be removed (good points and then output), you back up or these levels that rebound, so those merchants, a consistent trend of both these levels have been disappointed on the left bank were to be, because the price could not respond to you, but then again back down.
So the point I want to do is even if the Fibonacci levels to determine the possible exit points are good, often be remotely reliable, If you are looking for entry points to the continuation of trends.
