Technical indicators are readymade tool used by traders to confirm there analysis, .Its only a supporting tool .It doesn’t work in all scenarios

• : Technical indicators are pattern based signals or set of algorithms to predict future price movement. it is used as a supporting tool .It doesn't work in all scenarios
• : Its an indicator that smooths out price trend. It is a calculation that takes the mean of the given set of prices over the specific no. of days
• : RSI- Relative strength index. when the line crosses 30 from below its a buying zone
• : The golden ratio describes the predictable pattern on everything .The ratio is derived from Fibonacci sequence. Nature uses this to maintain balance
• : It uses horizontal lines to indicate support and resistance
• : Fibonacci retracement to identify support and resistance
2 Comments
1. Naresh 6 months ago

In response to your question

Fibonacci retracement – The Fibonacci sequence is one of the most famous formulas in mathematics. Each number in the sequence is the sum of the two numbers that precede it. So, the sequence goes: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, and so on. Traders believe the Fibonacci series has its application in stock charts as it identified potential retracement levels. Fibonacci retracements are levels (61.8%, 38.2%, and 23.6%) up to which a stock can possibly retrace before it resumes the original directional move.

Golden Mean is 1.618 Logic behind the golden mean is the ratio of two consecutive numbers in the Fibonacci series is the same for all the two consecutive numbers.
Example 1: 21/13=1.618 Example 2: 144/89=1.618

How to use it while trading stocks
First, find the recent significant Swing Highs and Swings Lows. For downtrends, click on the Swing High and drag the cursor to the most recent Swing Low. While for uptrends, do the opposite. Click on the Swing Low and drag the cursor to the most recent Swing High. When you applying the tool, the software shows you the retracement levels automatically.

click the link below for more details
https://www.youtube.com/watch?v=o7UNxJrns2g

2. Bini Balakrishnan 6 months ago

Thank u sir for the answer but I have not properly understood of how to draw it to make use of it

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