|Welcome to currency trading with Profiforex!
|When plotting Fibonacci arcs, the highest and lowest trend levels are usually taken.|
Fibonacci arcs are built as follows: The radius of the arc is taken as 100%,
then three arcs are built that cross the trendline at distances equal to 38.2%, 50%, and 61.8% of the total length of the segment.
|Thus we get support and resistance lines. When the price crosses these levels the impulse for moving forward is generated.|
|However, these levels can also be a serious barrier. All we can do is monitor the price when it comes close to the Fibonacci arcs.|