Diva

Support and resistance levels can offer strong Forex entry signals when the price breaks through an established level, as when this happens the price has a tendency to continue moving in that direction. Though, S&R levels and Fib retracements are both powerful trading tools individually, when you combine them together the trading signals become much stronger and more reliable

Though Forex trading is challenging, Learning, researching, reading and understanding the basics and, later on, the depth of Forex trading, will boost your authority status and increase your success rate.

YertleTurtle gazillion thanks for the clarification. It has made me to dig deeper about Fibonacci Retracement and now has an in-depth understanding on the topic.

More on 'Fibonacci Retracement'.... Fibonacci retracement is a very popular tool used by many technical traders to help identify strategic places for transactions to be placed, target prices or stop losses. The notion of retracement is used in many indicators such as Tirone levels, Gartley patterns, Elliott Wave theory and more. After a significant price movement up or down, the new support and resistance levels are often at or near these lines.

http://www.investopedia.com/terms/f/fibonacciretracement....which is an established on this field have this to say about 'Fibonacci Retracement' Definition of 'Fibonacci Retracement' A term used in technical analysis that refers to areas of support (price stops going lower) or resistance (price stops going higher). The Fibonacci retracement is the potential retracement of a financial asset's original move in price. Fibonacci retracements use horizontal lines to indicate areas of support or resistance at the key Fibonacci levels before it continues in the original direction. These levels are created by drawing a trendline between two extreme points and then dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%. . . Someone should correct me if this is not the position....