Disliked{quote} The Fibo shows the highest market and the lowest market of the last 39 close bars in the Paradox. If the highest bar in the 39 bars is after the lowest bar then the Fibs will be red. And if the lowest bar in the 39 bars is after the highest bar then the Fibs will be green. (sorry for this poor interpretation, its hard to explain. But basically if the Fibo is green and the market makes a new high then the Fibs will flip to red, and vice-versa. But sometimes the markets doesn't need to move for the Fibo to flip colors because the bars are...Ignored
This statement above is the only thing that is Partially true. When the market moves the Last 0.0 bar to the 40 spread the Fibo that is attached will move to the next higher/lower bar and and reattached. As you can see the next high is at the SAR 125.275. This is also true at the 100.0. The FIbo will change direction at the 61.8 when a new Fibo High or Low is created at the 40 Spread and reattached with either the DB or SAR. As you can see the H2 had shifted when the last 100.00 lost the 39 spread and flipped at the 61.8 to 0.0 and changed the 0.0 above to 100.0 This is how the Fibo flips. Which means you need to go back and restudy the Fibo.
Both Divergences is control with the DB Only. As you can see the DB is attached at the Fibo high and because the Fibo had shifted RED it is set and the Standard Divergence is also set with the DB. You had the Hidden divergence connected for the 125.226 SAR which means a retrace to the 61.8 which was a Red Fibo for 40 pips. Because of the Fibo flip the 61.8 is now on the top with Fibo Green. If this gets below the 61.8 then it will continue south. And again - you need to study and understand everything about the Paradox.
Where I am gong with this is because you went long against resistance. And that my friend is breaking the rules. So - let your trade finish out and study in what and why the market is moving as it is as your trade is running.
The Dove - Forex Trainer
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