Based on past observations, price will likely cycle between 50% & 0% until something changes in fundamentals that causes price to break the green or red lines. Sometimes - when nothing much is going on - the 38.2% line will provide , so it is turned on for this chart. It never seems to carry as much weight as the 50% line in terms of .
In accordance with my personal trading plan, the 50% retrace (yellow line) will be a potential short entry, -23.6% (green line) a potential long entry.
Here is the same chart seen in 120 minute bars, the timeframe on which the fibs are based. Following the initial swing, the 50%, 61.8%, and -23.6% lines often highlight a likely trading range until the next larger swing takes place.
When there are several trend changes in rapid succession, it helps to step back and use a higher resolution fib pattern.
This pattern was calculated on 8 hour bars versus 2 hour bars and shows how the lower timeframe trends are always part of a higher timeframe cycle.