School Corner
Retracement in a bear trend When the trend is down, rallies will end near the 61.8% retracement of the previous decline. In the following example (FTSE 100) the rally during June-July found resistance just above the 61.8% retracement of the March-June decline. The FTSE 100 rallied above the key level (5698) on July 5, the following days the FTSE 100 was trading back below the key level indicating selling pressure near the Golden Ratio.
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108 www.financial-spread-betting.com | July 2012