Apr
12/09
12/09
Retracement
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Retracement & Extension Levels
Retracement and Extension levels are essentially the same thing, just looked at in slightly different fashions. Traders look at retracement levels to figure likely points of support and resistance, while they look at extension levels as points to take profit. O.618, 0.50, and 0.382 are primary retracement levels while 0.236 and 0.764 are secondary ones. The primary profit taking extension levels are 1.382 and 0.618 (moving upwards from the Swing High).
The idea behind retracement is simple: when a currency....(login to view article)
