This topic contains 179 replies, has 177 voices, and was last updated by  Divya E R 9 months ago.

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  • #83499
     sanjaivasan 
    Participant
    Rank: Level 4

    Fibonacci Retracements are ratios used to identify potential reversal levels. These ratios are found in the Fibonacci sequence. The most popular Fibonacci Retracements are 61.8% and 38.2%. Note that 38.2% is often rounded to 38% and 61.8 is rounded to 62%.

    These retracements can be combined with other indicators and price patterns to create an overall strategy.

    #84402
     KAVITHA SUNDER 
    Participant
    Rank: Level 3

    FIBONACCI RETRACEMENT is based on Fibonacci ratios namely 61.8%, 38.2%, 23.6% (which are arrived by his series 0 1 1 2 3 5 8 13 21 34 55 89 144..up to infinity in which the (from the third) number in the series is the sum of two numbers in the left and 61.8% is the % arrived by any number in the series divided by its next right side number in the series EX 13/21 or 55/89etc and 38.2% is the % arrived by any number in the series divided by its second number at the right side in the series EX 21/55 or 55/144 etc and 23.6% is the % arrived by any number in the series divided by the third number at the right side in the series EX 21/89 or 34/144 etc)
    FIRST OF ALL draw the horizontal lines regarding the SUPPORT level and RESISTANCE level of the stock by noting SUPPORT as 0% and RESISTANCE as 100%
    NOW draw horizontal lines with respect to FIBONACCI RATIO s 23.6% ,38.2%, 61.8%
    IN THE BULL TREND
    IF THE PRICE MOVES UPWARD AND CROSSES ABOVE 23.6% then it is the SUPPORT and the next RESISTANCE is at 38.2% LEVEL
    if the price still moves UP and crosses ABOVE 38.2% level then it is the SUPPORT and the next RESISTANCE IS at 61.8%
    IN THE BEAR TREND
    IF the price goes down the 61.8% then this is the RESISTANCE and the SUPPORT is at 38.2% level
    IF the price goes down the 38.2% then this is the RESISTANCE and the SUPPORT is at 23.6% level
    THESE ratio s cannot be used independently without technical analysis
    NOTE some people use 50% and 78.6% levels also to find support and resistance

    #84534
     Padmanabha 
    Participant
    Rank: Level 2

    Fibonacci retracement uses horizontal lines to indicate support and resistance. These are created by drawing the trend line and dividing them by fibonacci ratios.

    #85295
     Ganesh Ramanan 
    Participant
    Rank: Level 5

    Fibonacci retracement is created by using two extreme points (usually major top and major bottom) on a stock chart and dividing the vertical distance by the Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8%, 100%. Then the horizontal lines are drawn at these levels to identify possible support and resistance.

    #160202
     Divya E R 
    Participant
    Rank: Level 3

    Fibonacci retracement levels are horizontal lines that indicate where support and resistance are likely to occur. Each level is associated with a percentage. The percentage is how much of a prior move the price has retraced. The Fibonacci retracement levels are 23.6%, 38.2%, 61.8%, and 78.6%. While not officially a Fibonacci ratio, 50% is also used.

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