Hello everyone,
I have a fibo question for you. In the jpeg file I attached I want to choose the bottom line of the fibo but I am confused at that point. Because I see two prices, one acted as support a lot of times while other is lower but occured just once. So which one I should choose actually?
Thanks a lot.
That large candle looks like it was created by a fundamental. Regardless, though, you’ll want to watch both levels as potential support. The way I see it, the first low was produced by rising volatility as people tried to push price through the strong support. In effect, the first “lower low” is a result of the existing support. Still, though, if price comes back to re-test the higher low AND breaks it, that lower low will possibility provide additional support for a bounce.