There seems to be an apparent contradiction between the first and second drawings of Fib Retracements lesson, or is this my not grasping the logic? (sorry cannot post a link yet as haven't earned my pips).
The first is an uptrend, so draw at swing low to swing high. So far so good. Draw from the bottom of the bullish candle to the top of the bearish candle... Ok... That all makes sense. The second of each pair is the actual swing in price...
Second drawing for downtrend... The retracement is drawn from BEFORE the swing actually occurs in the first of the 'swing pair'? Line from Bullish candle to bearish again. Why is this? I would have drawn from 1.4180 to a little above 1.3854 (candle before the bearish) or even the bullish candle after?
Please explain this to me as it has a bearing on support and resistance. Thanks d