This article is taken from the Forex Journal (February 2009 issue).
The author, Cornelius Luca, is the writer of Technical Analysis Applications – McGraw-Hill, 2004, Trading in the Global Currency Markets – Penguin Books, Third edition, 2007, Technical Analysis Applications in the Global Currency Markets – Penguin Books, second edition, 2000, and Introduction to Technical Analysis – Euromoney, 1997. He has authored numerous articles in both Stocks & Commodities and Futures.
- The ability to identify and follow trends is a major focus of interest for technical traders. Cornelius Luca discusses using a full spectrum strategy of Fibonacci retracement levels with Fibonacci arcs to lead to profitable trading.
Trend analysis is a major focus of interest, as the ability of traders to identify and follow them should translate into profits. More often than not, trend analysis is limited to the use of trendlines, channels and simple Fibonacci horizontal retracement levels. Trading is more complex than that, so I suggest employing arcs, in addition to the horizontal lines, when dealing with the duration and the timing of trend retracements.
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