No permission to Reprint or Reproduce this Article in any form
Dynamic Chart Analysis - IV
Among the tools are very important Fibonacci line speed.'s Review the concept of lines of speed or range.
Speed for dynamic chart analysis is the vector which supports the price curve, say the angle of the guideline movement. We see that with sudden increases or decreases in price, then we have a change of lateralization of the price vector that supports the movement.
If the measure after the third break of these lines we note that the price action of the "triggers" for the purposes of bankruptcy, as we see in the following example:
In this figure, the pair euro / dollar, then we see a break in the third line speed, the price goes down, with a target equivalent to a decrease of 38.2 or 61.8% as shown in image movement or previous rally.
However, when they have already seen the events seemed somewhat static, but I think the movement is given by the projection of the lines from the minimum to maximum travel, then a reversal pattern can make use of speed lines and let They work toward the future. They tell you in the form of projection which is to "break" the dynamic resistance or support price to anticipate the movement of prices. Remember that the projection of the line speed is drawn under the Fibonacci ratios indicated and if you monitor the behavior of the price, you will see on their lines were generally congestion occur, with subsequent pullbacks breaks and major movements.
