Need help understanding the direction of Fibonacci retracements and reversals

Hey there =) Sorry if this question has been brought up before.

I’ve been doing a lot of charting lately, mainly in harmonic patterns. But one thing that keeps on confusing me, no matter how many articles I read on it, is what direction a Fibonacci Retracement should go.


Like this for example. Questiontime:
What are the rules that dictates wether or not the 100% is measured top down or bottom up?
What exactly are we measuring here?
All harmonic patterns start with an impulse leg up to a pivot, XA. They’re meant to be retraced and B will be located at 38-78%. But 38-78% of what direction??? It’s driving me nuts :frowning:

Hello, Alarinth

Here is a PREVIOUS POST that explains [B]Fibonacci retracement[/B]

(and also [B]Fibonacci extension[/B] and [B]Fibonacci expansion[/B], if you’re interested in those tools, as well).

Welcome to this forum, by the way !

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