Replies to post #81 on Koios Beverage Corp (FITSF)

[boston127]

The retracement yesterday was expected.

If you are a follower of the Fibonacci Sequence, then you would have expected a retracement of 38% to 67%. With a closing of .70 and opening of .68 on Wednesday, and a low of .50 yesterday, we experienced a perfect 38% retracement - to the penny. This is considered a moderate retracement, and puts us in a good position to move north.

It is a popular opinion that when correctly applied, the Fibonacci tools can successfully predict market behavior in 70 percent of cases, especially when a specific price is predicted.

In other words, traders should not rely on the Fibonacci levels as compulsory support and resistance levels. The Fibonacci levels, therefore, are a sort of a frame through which traders look at their charts. This frame neither predicts nor contributes anything, but it does influence the trading decisions of thousands of traders.

Fibonacci Retracements are ratios used to identify potential reversal levels. These ratios are found in the Fibonacci sequence. The most popular Fibonacci Retracements are 61.8% and 38.2%. Chartists apply Fibonacci ratios to define retracement levels and forecast the extent of a correction or pullback.

Retracements in the 38.2%-50% range would be considered moderate.