Fibonacci Series applicability to Stock Market | Blog Brings Profit For You
  • Recover Lost Money Plan

    A number of traders have lost their money in the market due to wrong trading advice or wrong decisions and emotions. We keep on getting a number of requests for helping these traders recover their lost money. Thus, this was the genesis of Recover Lost Money Plan. We are proud to say that till date we have helped 1290 people recover their lost money. Recover Lost Money in Market

  • Our Most Successful Intraday Tip

    Jackpot tip, as the name suggests has the potential to make you a Millionaire as it is not the number of tips one trades; but it is the accuracy of a single tip which has the potential to make you a Millionaire. This tip is a value for money for all i.e whether one can see the trading terminal or not or is dealing through a broker on phone at BSE, NSE or in Future and Options segment.
    Click on Jackpot Sure Shot Tip to know more...

Subscribe to this blog

Subscribe to full feed RSS
What is Daily Market State???
Enter your Email

Preview | Powered by FeedBlitz

Fibonacci Series applicability to Stock Market

Posted By On 10/30/2008 09:32:00 AM Under
1. One can accurately predict the trend of stock market with the Fibonacci numbers and for that we can consider recent top and bottom of a trend (up or down). One can make use of Fibonacci retracements to generate targets for rallies and corrections.

2. The formmula for finding this data is as stated below:

UP targets = Support + X *(Resistance-Support)

DOWN targets = Resistance - X *(Resistance-Support)

Where X equals 0.382 or 0.5 or 0.618 or 1.618 or 2.618

3. However one need not undertake the laborious calculations as I have made a Pivot Calculator which performs the said task mechanically.

4. One will find its usage even in Elliot waves as all waves (impulse or corrective) are related to each other by Fibonacci ratios. One will have to notice this fact that 5 impulse waves (1-2-3-4-5) and 3 correctives (A-B-C) are also Fibonacci numbers.

5. By using Fibonacci numbers one will find that any correction is generally limited to 50% or 61.8% retracement of the earlier rally. Moreover in any upside rally also one will find the resistance exists at 61.8% or 161.8% retracement of the prior correction.

6. One will be able to understand the same amply with Hindalco chart (10 second frame change).

Most Read Content