Elliott Wave Theory in Day Trading

Fibonacci (pronounced fib-on-arch-ee) was born around 1175 AD in Pisa, Italy. He was one of the greatest mathematicians in the middle ages and many day traders profit greatly from his insight and theory on waves.

The theory is that waves of momentum are opposed by counter waves that retrace to the following numbers quite often.

1. 38.2% Retracement - 2. 50% Retracement - 3. 61.8% Retracement Level.

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In a bearish trend the graphs work the opposite way.
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