Hi everyone I am have a little difficulty understanding something in relation to the fibanacci retracement.
What I would like to know is say there is an up trend and I draw the fibanacci from the swing low to the swing high. At the swing high the trend goes sideways for a bit and then starts a new trend.
My question is, can I leave the fibanacci in place at the swing low and just drag the top (swing high) to the next highest point after the sideways movement? Sorry if this is a bit confusing. My thinking is that even though there was a sideways movement the trend still went up. If I left the fibanacci in place after the sideways move had ended there are no more lines or fibanacci levels. I am enclosing a screen shot so that you can see, and hopefully it makes more sense. Many thanks for feedback you can give.
