Q: Please explain the relationship between Fibonacci numbers and the apparent tendency of some stocks to reverse directions as t

A: The topic of Fibonacci numbers is subject to debate (often lively!) when it comes to the markets. Some believe that retracement to the Fib ratios (most commonly used are .382, .50 and .618) often provides a pivot point. Whether you believe in them or not, you can’t ignore the fact that they are watched by some traders. That, in and of itself, may be reason enough to consider these ratios – in other words it could be a self-fulfilling prophecy. This may be what you have observed.