Retracement

Markets never go in a straight line, in either direction. One question then that a trader has to ask is at what level to expect a retracement, aka a pullback. Failing to account for retracement can either result in missing out on profits, by exiting the trade too soon.

Does Fibonacci retracement actually live up to its reputation as a predictive tool? Take a look at the following results and make up your mind.