Fibonacci Retracement starting at 1.000 instead of 0.000

Beginner Questions
1

Hi,

Just a quick question as I work through the School of Pipsology. I’m at the Fibonacci Retracement section, and don’t understand why the swings start at 1.000 and end at 0.000 instead of the other way around, ie the swing levels start at 0.000 and end at 1.000? I’m sure there is a good reason for using it this way Fx, but I don’t see it.

Rich

2

I was told that it’s the percentage of retracement that you’ll be measuring. If it comes back to where you started then that’s a full (100%) retracement (double bottom).

3

mrmarx has it right, but to explain it a different way, .00 should always be where price is now. A move back towards 100 shows up in percentages. That’s why it’s called a “retracement”.

4

As stated above I can not beat that. Its spot on

mrmarx0302 welcome to babypips (sort of your not new but have not made many posts)

5

Thank you!!!