These are using Fibonacci numbers... a stats game to try to predict stock movements and probabilities.

I don't know if I believe in them myself, and don't study them - so take my comments in stride, but they are fun to play with.

The chart I posted shows the confluence numbers over the points in stock price which are assumed to be important levels that will take an extra punch to get through or below.

Here is the definition of confluence.

Confluence Confluence occurs when you take fibonacci projections off of multiple trends and get the same number and strengthens when it corresponds with other technical advents such as gaps, swing high/lows, chart indicators crossovers (MACD, RSI, Stochastics, etc.), trading congestion, etc. The more confluence, the more significant the level. I really take notice when I get two or more fib #s (say a 38.2% and 61.8%) to correspond with a gap in the chart or a swing high. Confluence is very powerful as it combines multiple technical analysis techniques to arrive at the same conclusion, and should be relied on accordingly IMHO

Here is the link

http://www.stockta.com/cgi-bin/school.pl?page=fib#confluence

BK