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Originally Posted by foamgod
..since I am just bumping around waiting for prices to move
And below is what my broker told me
"......61.8% retracements imply a new trend is establishing itself.
The three major Fib levels are all possible places to enter a trade. In the perfect situation, the price will fall just below any one of the levels, and once it moves back above you can buy to enter the trade."
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Don't worry, you'll be busy in an hour or so
I'm just doing my end of quarter accounts and paying bills
What your broker said contradicts itself to a certain extent, at best it's misleading. I've found on Eur/Usd and Swissy 50% is usual, on Cable it's 50 and 61.8, on 4hr charts it seems to be mainly 50%. 38.2% can also be significant, if price comes off there it usually indicates a strong trend.....but then as you know, nothing is set in stone! A lot of the time it's the price action surrounding those levels that hint at where it's headed.
That's my take on it anyway, others may disagree.
Mick