What is Fibonacci Retracement? What is Fibonacci Market Technical Analysis?

What is a Pivot Point? Technical Analysis with Pivot point?

What is Fibonacci Retracement? What is Fibonacci Market Technical Analysis?

These are some levels(price points) identified by using a formula of Fibonacci series for any stock. Many a times it is observed that the price reverses whenever it reaches one of Fibonacci levels. The ratios are called Fibonacci retracements. These are calculated using the previous period High, Low, Close prices. We will not delve into this mathematically more, instead let us take an example. Consider a stock XYZ which has a opening price of 320 today. The Yesterday's Day High was 315, Day Low was 302 and Close was 314. Now Fibonacci retracement provides total 6 values which can be considered as resistance or support.

R(Resistance)

S(Support)

R3:323.33

S1:305.37

R2:318.37

S2:302.30

R1:315.30

S3:297.33

Following can be analyzed:

1.

After opening at 320 there are high chances of stock reversing back at 323.33. Similarly it will find some support at 305.97.

2.

Beyond 323 and below 297Fibonacci cannot be used for analysis.

3.

The Fibonacci Retracement Formula and Calculator can be found on Calculator page

www.youtube.com/watch?v=ztcd1ZGo2oM