Kevin Matras shows how to use stock retracements
and moving averages to pin-point rebound reversals and rally continuations.
Today an upward retracement
will occur within the downward correction movement.
00, a 50 percent retracement
of its fall from just above 88.
The AUD/USD rallied after the a harmonic retracement
noted in the previous update.
In fact, today's low came remarkably close to a 50-percent retracement
of the stock's rally from its July low (14) to its October high of (18.
is a very popular tool among technical traders and is based on the key numbers identified by mathematician Leonardo Fibonacci in the thirteenth century.
78 level, which marked a 50-percent retracement
between the security's May peak and August nadir.
A minimum retracement
is usually about a third of the prior trend.
3 mark, which defines a 50-percent retracement
between the stock's May 5 peak and its July 18 nadir.