... today see Price Reaction @ 50% Retracement Level
... as it HIT 50% Fibonacci Rebound Level (Tech Analysis)
... 50% Retracement occasionally manifest itself after Sharp Rebounds from Volatile Sell-Down.
In Technical Analysis,
- Fibonacci Retracement is created by taking two extreme points (usually a major Peak & Trough) on a stock chart & dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%.
- Once these levels are identified, horizontal lines are drawn and used to identify possible support & resistance levels. Before we can understand why these ratios were chosen, we need to have a better understanding of the Fibonacci number series.
For a more in-depth discussion of this subject,
- Read more: What is Fibonacci retracement, and where do the ratios that are used come from?
