Fibonacci retracements are an essential part of trading.  At ToTheTick, we've found one type of retracement especially useful.  This is the seventy eight point six retracement!

Fibonacci Basics

The Fibonacci numbers and principle is also used in the financial markets.  It is used in trading algorithms, applications and strategies.  Some typical forms include: the Fibonacci Fan, the Fibonacci Arc, Fibonacci Retracements, Fibonacci Expansions, Fibonacci Extensions, and the Fibonacci Time Extensions.

Seventy Eight Point Six

For the purpose of this trade setup, we are focusing on the 0.786 Retracement; it is a commonly used and watched Fibonacci Retracement number.  It can be a very powerful catalyst triggering market reversals.  When it occurs in one of the zones, it can be used as an additional confirming factor to give us an expectation of the price to react in that area.  We understand that this is very complex; for this reason, we intend to provide further explanation and details soon.  For now, here are two examples:

Remember, we are not an educational service.  To fully understand this concept, you might have to do your own additional research.

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