When you have a price action signal present on the daily chart, you then match up the fib 50% retracement level if there is one present (see chart example below), if the price action candlestick signal matches up with the 50% swing retracement level then you’re good to go and potentially have a valid trade. If you can also find a relevant horizontal level to match up here, its a ‘double whammy’ of confluence (a reason to get excited). - See more at: http://www.learntotradethemarket.com/forex-trading-strategies/trading-50-percent-retracements-price-action#sthash.gyrBtQ5Z.dpuf