Retracement in Forex Trading FXTM
Quite simply, a retracement is any temporary reversal in price within a major price trend. A reversal is the end of the price trend and either the beginning of a new one or the beginning of a period of consolidation. The likelihood of a reversal increases if there is a confluence of technical signals when the price reaches a Fibonacci level. 22.6%, 38.2%, 50%, 61.8% and 78.6% are the most popular …