There are two fascinating concepts in the Fibonacci retracement theory, the natural 50% retracement of a spike in the value of an index/currency/futures contract and an indication that an uptrend is emerging. Incorporating additional trends, fundamentals, and good old-fashioned gut feeling can also help. However, many would argue that the fundamentals are already in the index/contract price, and all you need to focus on is trends repeating themselves and gut feeling.