Commander in Pips: Ok, now, let’s take a look at a down thrust. But here I want you to mark Fib retracement and expansions. In a downtrend: During a downtrend we should enter Short from Fibonacci resistance level and take profits at Fibonacci Price extension levels. To estimate and draw these extension levels you should accomplish three-click procedure: 1. Click on significant swing high. For example, this could be any X point, according to our terminology; 2. Drag your mouse to significant swing low. It could be an “A” point, for instance, - most recent swing low, but this is not absolutely necessary; 3. Then drag your mouse to the most recent high, from which the recent down move has reestablished – this will be the high of the market that usually stands around highest retracement level that has held market during retracement. Pipruit: Ok, I’ll try. Commander in Pips: Here is your chart – let’s assume, that you’ve seen this evening star and followed the swing down. So you intend to enter short: Chart#5 EUR/USD 4-hour chart Pipruit: Ok, here are the Fib retracement levels: Chart#6 EUR/USD 4-hour chart Pipruit: And when I am sure that we’ve got our “B” point – the highest point of retracement up - we draw expansions: Chart#7 EUR/USD 4-hour chart Pipruit: Commander, I’m stunned again – the market has turned up precisely at the 1.0 extension level.