Hello,
Could someone explain how to determine the difference between a True Reversal vs. a Fibonacci Retracement?
If it retraces beyond the golden ratio of 61.8 or even 78.6, does this mean this trend is Reversing?
Thanks in advance!
SJ
It doesn’t mean it is, but it means it probably is.
Its misleading to use TA like a DNA analysis or a fingerprint at a crime scene. This is even more the case because price is still in motion - either in a few minutes or a few hours or tomorrow, price will have moved again - its like finding a fingerprint that is still forming - when do you stop and say OK this is what it means. The chart isn’t a crime scene you can put tape around and keep everybody out so it doesn’t get changed.
Actually, TA doesn’t tell you what price will do, it tells you what you could do in case price does this or that.
Here’s my favorite Fibonacci video. I’m not promoting pushing okaying anything else this guys doing, but I thought this video was very informative
Hope it helps
Gp
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