I promised you a video about how to draw Fibonacci retracement levels yesterday, so here it is. Sorry for my poor English!

If anyone wants this video, just drop a comment and I will give you download instructions. Due to bandwidth problems, I have removed the link.

If you have additional questions, then why not just leave a comment here and I’ll try to help you out.

Cheers!

What are they?

A support line (or support level) is a price value that acted as a floor, blocking the price from moving lower.

A resistance line (or resistance level) is a price value that acted as a ceiling, blocking the price from moving higher.

Support and resistance lines must have at least two points where the price was blocked and they need to have historical significance. I generally look for at least three bounces from a line to consider it a relevant one. Also, lines that acted both as support and resistance, hold much greater significance.

The same lines are used for tens of years. We can use these lines to sell or buy when the price gets near them. The idea is that price will react at these levels, in one of two ways: breakout (they break the level) or reversal (price bounces off the level and gets blocked).

How to draw them?

Drop a comment here and I will send you a home-made video that explains this step by step.

If you have additional questions, then why not just leave a comment here and I’ll try to help you out.

Cheers!