tick up reversal forming, page-14

tobes the most important are 38.2, 50, and 61.8 with 61.8 arguably the most important of the lot... You would usually only call a 38.2 retrace in the context of a very powerful move up and it helps to have some backup, i.e. a support/resistance line or another fib line that coincides at the same level.

You can draw multiple sets of fib lines from any low to the significant high of the move. Which is where 'confluence' comes into play. A bit hard on this chart because the pips are so big but if for example you called .6c a low on 4th april after the rise to .7c th day before and drew fibs to 1.2c high you'd get a 61.8 line in the same .8c zone as the 38.2 line that comes from the .3-1.2 set of fib lines.

They both coincide with major support at .8c with numerous touches from april 2009 - feb 2010. When you've got 3 different support signals all at the same price it's a very powerful signal.