By studding more than 100 situations as above, I came to the following interpretations.
1. When the price reaches to the 38.2% Fibonacci retracement level for the first time after the reversal of a trend, a breakout of 38.2% Fibonacci retracement level is rarely found.
2. When the price reaches to 38.2% Fibonacci retracement level and pulled or pushed back to the 100% Fibonacci retracement level of previous low or high, a breakout of 38.2% Fibonacci retracement level rarely happens.
3. When the price reaches to the 38.2% Fibonacci retracement level for the third time, a break out is highly expected.
4. When the 23.6% Fibonacci retracement level represents strong support or resistance level, a breakout of 38.2% Fibonacci retracement level is common.
5. If the price fails to make a lower low or higher high, the brekouts of 38.2% Fibonacci retracement level becomes usual at second attempt.
Comment
⋅
6. The market will only return to the 61.8% fibonacci level in reversals when the traders believe a trend continuation is going to take place.