The 0.7635ish area we're focusing on looks probably messy, but that's for the sake of education. Having drawn those Fibonacci lines could give you an idea on how confluences work without the need of many tools, but just a line here or there.
Drawn from the long-term low in 2016 (zoom out!) to the recent high, we get the yellow 0.382 line.
On a smaller swing, we have the orange line that gives us the 0.50 fib retracement.
The even smaller swing gives us the red line which shows the 0.618 fib retracement.
And lastly, the dark red line drawn from the retracement of the top gives us a 1.272 fib extension.
The lines are formed within a 20 pip area and bounced off immediately. Showing more traders/investors are looking at this particular spot.
This huge Fibonacci zone plus an intermediate-term trend line showing support (first resistance, and when it breaks it should become support) gives us a high probability swing trade with potential compound entries.
We'll try to keep you updated on this ride.
Happy pippin'!
Drawn from the long-term low in 2016 (zoom out!) to the recent high, we get the yellow 0.382 line.
On a smaller swing, we have the orange line that gives us the 0.50 fib retracement.
The even smaller swing gives us the red line which shows the 0.618 fib retracement.
And lastly, the dark red line drawn from the retracement of the top gives us a 1.272 fib extension.
The lines are formed within a 20 pip area and bounced off immediately. Showing more traders/investors are looking at this particular spot.
This huge Fibonacci zone plus an intermediate-term trend line showing support (first resistance, and when it breaks it should become support) gives us a high probability swing trade with potential compound entries.
We'll try to keep you updated on this ride.
Happy pippin'!