Checking my FIB levels

[Posca]

A question for any technical analysts in the know..

What is the next level after the 61.8% retracement level? Do most traders use:

74.6%;
76.4%; or
78.6%

 

[Vicorka]

23.6%, 38.2%, 50%, 61.8% and 76.4%.

 

[Peter Anderson]

Hi Posca,

I've been using Fib Analysis in conjunction with volume spread analysis and harmonic analysis, and the 78.6% would definitely be the next "key" level - it is used for quite a few harmonic trade set ups.

I also find that the 70.7 level will reveal key areas of support and resistance when trading on Fibs alone (the complementary derived ratio from the square root of the 50% Fib level). Try adding the 0.707 level to your Fib settings and you will see what I mean.

Hope the information helps,

Peter