Fibonacci Retracements

 
Fibonacci Retracements are displayed by first drawing a trendline between two extreme points, for example, a trough and opposing peak. A series of nine horizontal lines are drawn intersecting the trendline at the Fibonacci levels of 0.0%, 23.6%, 38.2%, 50%, 61.8%, 100%, 161.8%, 261.8%, and 423.6%. (Some of the lines will probably not be visable because they will be off the scale.)

A sample Fibonacci Retracements is depicted in the following figure:

FRetracements.gif (7205 bytes)

Because this is an interactive drawing feature, the user normally create these retracements by selecting the first extreme point and then dragging the mouse to the other extreme point. When the mouse is released, Chart FX FE will make all the necessary calculations and draw the Fibonacci retracements. Please note. it is not necessary that the user clicks on a specific data point as the Fibonacci retracements will be calculated according to the axis scale and the position the mouse was released.