Properties of retracement levels – as support as resistance 1. Fibonacci retracement could be applied at any time frame; 2. The major ratios and most reliable levels are 0.382 and 0.618; 3. Because of that, they are extremely well-known among traders and market makers. It means that the appearance of a failure breakout, such as Wash and Rinse is very probable there. 4. If some level has been broken by price action – then it should be dropped out from further analysis and you have to not take it in consideration. 5. If th market totally disrespects some obvious and strong level, say, on weekly or monthly time frame – very often the market returns to it and tests it from the other side after breakout; 6. 0.5 level of some long range single up/down candle itself could be a support/resistance level, so as its low/high. 7. We can judge via retracement depth about further market moves. If a retracement was shallow (0.382-0.5) then we can expect a significant further move. If a retracement was deep (0.618-1.0), then any up move could be shallower, or even just back to the previous highs. 8. Levels could be broken - they are just temporary supports or resistances. How it looks like – you can see on chart #1. They are not “Stand forever” substance. If it was so – there will not be any simpler thing, as just to buy or sell from them. Unfortunately this is not the case. That’s why – 9. Use Fibonacci levels only in combinations with other tools to increase probability to success. 10. It’s better to use levels of higher time frames to trade on lower time frames. For instance to enter long on 60-min chart, it’s better use support levels of daily time frame, etc. 11. The higher the time frame of the swing – the stronger retracement levels from it.