Hi, can anyone explain the logic of where to apply Fibonacci retracements?
On the ff chart I can see the Fibonacci retracement levels have been applied. In this case the bottom line is the low on the chart with the subsequent levels above.
What is the logic in applying the retracements from this low when if you scroll further back there'll be a lower low?
Is that how Fibonacci retracements work? They can be applied from any time period henceforth? Obviously on too small a timeframe they'll cease to be effective?
I didn't find the right solution from the Internet.
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