The forex industry is made up of countless definitions and it's easy to forget a few along the way. But because no forex education can be complete without a glossary of forex terms, we've compiled one which aims at explaining key definitions in the simplest way possible. This way, you'll never be lost or confused again!
It is a technical analysis tool that is drawn between two major points - top and bottom. The arcs are drawn centered on the second point intersecting the line connecting the two major points at 38.2%, 50% and 61.8%. The theory holds that prices are expected to find support and resistance at the arcs.
Category: Technical Analysis