The Wave Principle Basics
The Fibonacci and The Law of Nature
The higher the numbers, the closer to the perfect number.
In the markets, we will look for this numbers.
They can be seen as expanded (positive) or contracted (negative)
◄ 0.618 | 0.382 || 1.272 | 1.618 ►
These levels mark zones as real support and resistance where price will bounce and turn around, or break/retest to go further.
These numbers mean how much a price will retrace, and how far the next impulse will go.
Ideally the above setup is how we program a trade.
Find an impulse and identify a corrective figure's retracement point.
Get in at 618, SL at 0, TP 1 @ -0.272 and TP 2 @ -0.618.