Not interested in a debate of Fibonacci's usefulness, but I'd like some input about a specific question I have. Considering this scenerio; You identify a long term trend, it begins to pull back. You apply your fibonacci retracement lines and the underlying bounces perfectly off the 38% line and continues the trend to new highs. After trending up new highs it begins to retrace again. (here comes the question) Would one consider this an extention of the original trend and simply elevate the 0% line up to the new high, OR would one readjust the entire scale to begin at the lows of the last retracement and apply the fibonacci lines to this last leg of the trend? If it's the former, it seems you could go back for eternity on some markets that have been trending upwards for years or decades. A good example would be the current gold trend.