{quote} Very often market will start moves from less obvious spots for different reasons, for e.g: A normal retracement could be .5 but market instead retraces .447, what happens then? All the traders that have their fib tool plotted and are waiting for price to touch .5 retracement will miss the move and don't understand why price didn't respect the fibs when in reality price did respect but not the one expected. Another level that is very common is .707, traders waiting for .618 or .786 but market retraces exactly from .707 and turns leaving some...
actually, to be honest, i really find myself difficult in defining the swing low and swing high to create a fibs line. for me, im not dragging the tail of the candle from the low tail into high tail. i drag the fib from S to R. is that okay? i mean i found a little confusion, that the 0.382, 0.50, 0.618 level most of the time failed. am i wrong in defining the swing low and swing high within S/R line? or i just switch it to as your fibs point?
{quote} i see...psycological level play in role to act before another people execution point.
