I think by this time, one will realise why I prefer those two Fibonacci retracement levels.
The first one is really racy due to the prior strong momentum; the price is more likely to continue to rise if it was rising before the 38.2% Fibonacci retracement.
Similarly, a bearish continuation is also likely after an initial strong bearish momentum.
On the other hand, healthy companies' stocks do take a break or pause in the zone of the 61.8% Fibonacci retracement.
One should be ready to join a racy third Elliott wave as soon as the price finds a support above the high of the first wave after a 38.2% Fibonacci retracement that formed the second wave. I mean a 38.2% Fib 2nd wave is attractive and appealing to the third Elliott wave hunters.
One will also notice that many healthy second waves often bottom in the region of the 61.8% Fibonacci retracement of the first wave. And most cash cows blue chip stocks with a strong balance sheet often end their corrections after a bullish trend near the 61.8% Fibonacci retracement. Those are my observations.
Oops! time is up. I think we have reached the end of this discussion. However, if you any questions or comments, please post them under any video at Dayprotraders YouTube channel. In due course I will answer them or post another article or video.