Traders and investors who use Fibonacci Retracement and Extension levels are already familiar with the idea that price action does have some organization into recognizable patterns of contraction and expansion. The turning points identified by Fibonacci (and harmonic analysis) are the inflection points of the patterns where the natural ebb and flow of market participation begin.

The application of these turning points is much like the use of any support or resistance level; it must be considered within the context of the underlying psychology of the market or trend and can be confirmed with other types of analysis to establish more reason for the market to react at that level. Much like Fibonacci Retracements and Extension - where the rally or sell-off used will determine how the support and resistance of the projected levels will be laid across a chart - there is subjectivity in the structure of harmonic analysis. It's the relationship to the Fibonacci ratios which give these patterns structure and reflect the natural contraction and expansion of the market and give the turning points trading entry application. Without recognizing these actionable levels, traders will not be able to react to the projected turning price levels and use these inflection points to confirm and/or enter the market.