Chartanalysen Square - Fibonacci

Retracements

Even intact uptrends and downtrends are periodically by intermediary against movements interrupted. These movements, contrary to the overriding trend is called a upward phase of "corrections" and in a downward phase "recoveries".

Analysts now for us is of course of particular interest if there is a method that provides us with a high predicted probability of a hit, when can these corrections / recoveries are completed, and thus the overall trend is resumed. Since we basically always positions in the direction of overall trends like to create offers, with the tool "retracements" a good way.

Retracements

The following figure shows a typical correction in an uptrend. Here, the value is corrected up to the area of the 50% retracements before the original trend is resumed.