How to use Fibonanci levels?

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  #1  
Old 12th March 2008, 01:04 PM
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Default How to use Fibonanci levels?



Friends plz help?

How to use F. levels.

I am new in T.A

Thanks

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  #2  
Old 12th March 2008, 03:04 PM
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Default Re: How to use Fibonanci levels?

http://www.marketscreen.com/help/ato...hideHF=&Num=49
http://www.tradingday.com/c/tatuto/f...ccitricks.html
http://www.stockta.com/cgi-bin/school.pl?page=fib

hope it would be useful to u.
regards,.
darsh

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  #3  
Old 13th March 2008, 06:29 PM
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Default Re: How to use Fibonanci levels?

Thanks Sir,

One more question - How do we know in F.Retracement that the price will reverse at 38.2%...50%...or 61.8%

I mean How to get Buy/Sell signal from fibonacci.?

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  #4  
Old 13th March 2008, 06:58 PM
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Default Re: How to use Fibonanci levels?

Quote:
Originally Posted by Sunnyp View Post
Thanks Sir,

One more question - How do we know in F.Retracement that the price will reverse at 38.2%...50%...or 61.8%

I mean How to get Buy/Sell signal from fibonacci.?
Price doesnt reverse at any of those levels, you can draw 33% and 65% levels and there will be a lot of occassions where price will reverse at those levels too.

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  #5  
Old 14th March 2008, 08:02 AM
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Smile Re: How to use Fibonanci levels?

hi, there used to be quite an active discussion on fibonacci trading @ forexfactory via a thread run by Skunky... U might pick up some ideas there...

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  #6  
Old 21st March 2008, 01:11 PM
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coolabhi99 is on a distinguished road
Default Re: How to use Fibonanci levels?

Can some one help me with how to use Fib Time??

Thanks in advance,

Abhi

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  #7  
Old 24th March 2008, 02:37 PM
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Default Re: How to use Fibonanci levels?

Quote:
Originally Posted by Sunnyp View Post
Thanks Sir,

One more question - How do we know in F.Retracement that the price will reverse at 38.2%...50%...or 61.8%

I mean How to get Buy/Sell signal from fibonacci.?
The fibonacci ratios are coming from the fibonacci sequence (1,1,2,3,5,8,13,21,34,55..)
From there you can see that the there is no ratio which is exactly 61,8%... there is only ratios like 100%, 50%, 67%, 60% ... not 61,8%

the 61,8% represents the approximate ratio of the sequence what it will grow when sequence will continue further. It will never reach to exact 61,8% but it will get closer to that value.

So, when using this ratio in single stock in the stock markets, you cant expect that the price will turn exactly on 61,8% since even the fibonacci serie doesnt get to that ratio. It's only an estimate of the average behavior.

The situation is a bit different when there are many stocks grouped together as an index. When using the index instead of single stock the behavior will change to averaging behavior and therefore you can expect that the ratio will be met (or at least get very very close).

"many stocks - what it does mean?"

It means that there must be hundreds / thousands different kinds of stocks affecting to index. The more the better. The more stocks there are affecting the closer the index will get to fibonacci ratio.

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