When marking Fibonacci retracements in a downtrend, you should?

• A. Mark from high to low in downtrend
• B. Mark from low to high in downtrend
• C. Mark from high to low in uptrend
• D. Mark from low to high in uptrend

Answer: (A)

Fibonacci retracements are used to identify potential levels where a price pullback might find resistance or support during a moving trend. In a downtrend, the relevant move is the drop from a swing high to a swing low. Plotting the retracement from that high down to the low anchors the levels above the low, showing where a rally within the down move might stall and the downward trend could resume. If you marked from the low up to the high in a downtrend, you’d be measuring a retracement of an opposite move, which doesn’t align with the current price action you’re analyzing. In contrast, in an uptrend you would mark from the swing low up to the swing high to capture pullbacks within the upward move.