1.6 - Fibonacci & retracement zones

• Diving a number by the next number in the sequence leads to the ratios:
  • 21/34 = 0.618
  • 21/55 = 0.382
• Fib levels help find support and resistance based on these naturally occuring proportions
• Should be used as another point of confluence
• Best to watch for weakness / strength when getting close or into the zag zone.
• Eg:
  • Bearish div on the RSI
  • Reversal pattern on smaller timeframe
  • rising into zag zone

Important fib numbers are:

• 0
• 0.236
• 0.382
• 0.5 (not technically but added anyways)
• 0.618
• 0.786
• 1

When using fib retracements:

• Use wicks when measing