More Examples of Key Levels that the market tests: Fibonacci Levels

There are another set of levels that can be derived from the price action that many trader on all time frame pay attention to, namely the Fibonacci retracement levels. This is based on the observation that once the market has made a significant move in one direction, it will very often retrace and fixed percentage of this move before moving on to make new highs or lows. The 3 main retracement levels are:

In the SnapDragon RT system, these levels as well as other Fibonacci levels, can be calculated and drawn automatically.