Does Fibonacci levels help you find out the bottoms?

[sankar ghosh]

Dear Mr.Goswami,
Right now all the indicators for nifty looks positive.You may slowly enter for long with mental stoploss at 4540,preferable sector is oil & gas, healthcare & FMCG.
Regards
Sankar

 

[guhaanirban]

Fibonacci can be used with ADX together.during bullish trend when ADX together with +DI & -DI showing +ve trend look for fib expansion for upper tgt(resistance levels), incase of bearish trend we should go for fib retracement levels to find out support levels together with ADX confirming trend maturity or reversal.
regards

 

[pavvu_kk]

Great discussion!
I'm pretty new to the trading part. Could someone please point me to a primer which I can read up to understand Fib and be upto speed with you guys

Note: I'm a complete novice w.r.t trading and have no clue how to start understanding its intricacies. I, however, have good amount of investing experience

 

[ashutosh11]

Re: Does Fibbonacci levels helps you to find out the bottoms?

Dear one,
I am still a learner and not a learned one ! My humble answer to this is that while keeping an eye on the fib rations, we also have to keep an eye on the time frame.From the recent low or high, there is a specific number of days which meet the particular ratio. As we know , the fib sequence is;
1 1 2 3 5 8 13 21 34 55 89 144 233 377............. These are also the important days when the market achieves a particular retracement or ext. ratio.
For example, the low was 4788 on May 25th . Since then, mkt achieved almost all the important rations.On Oct 16th, the market completed 144 days after making a hing of 6284. Since then only one ratio was left to be kissed by the nifty and that was 2.618 which may bring the nifty levels up to 6387.However , the time frame is over and on November 5th,Nifty almost kissed 2.618,that is,6349.We have to give and take a few.From here, Nifty may retrace back. Here we have to watch not only the number of days but also the moving averages. I am expacting Nifty to kiss 50 DMA which falls on 6015. Here we have to watch the 100 DMA also.From Oct 16th, market is bearish and this will go on for 55 days,that is, the first week of Dec.The next high will be made on or after Jan. 13th 2011 which is the 233th day, againg a fib day .
Let's see what happens ? Wish you all happy trading.

 

[summasumma]

Re: Does Fibbonacci levels helps you to find out the bottoms?

Dear one,
I am still a learner and not a learned one ! My humble answer to this is that while keeping an eye on the fib rations, we also have to keep an eye on the time frame.From the recent low or high, there is a specific number of days which meet the particular ratio. As we know , the fib sequence is;
1 1 2 3 5 8 13 21 34 55 89 144 233 377............. These are also the important days when the market achieves a particular retracement or ext. ratio.
For example, the low was 4788 on May 25th . Since then, mkt achieved almost all the important rations.On Oct 16th, the market completed 144 days after making a hing of 6284. Since then only one ratio was left to be kissed by the nifty and that was 2.618 which may bring the nifty levels up to 6387.However , the time frame is over and on November 5th,Nifty almost kissed 2.618,that is,6349.We have to give and take a few.From here, Nifty may retrace back. Here we have to watch not only the number of days but also the moving averages. I am expacting Nifty to kiss 50 DMA which falls on 6015. Here we have to watch the 100 DMA also.From Oct 16th, market is bearish and this will go on for 55 days,that is, the first week of Dec.The next high will be made on or after Jan. 13th 2011 which is the 233th day, againg a fib day .
Let's see what happens ? Wish you all happy trading.

Hi Ashutosh,

Just wanted to know, Have you tested ur strategy with past data? that is taking fibonacci for days rather than levels to identify highs and lows?

Thanks

 

[ashutosh11]

Re: Does Fibbonacci levels helps you to find out the bottoms?

Hi firiend'
Yes. this happens each and every time with small variations ! From 6357 to 2252 , and from 2252 to now, please try to find out the number of days. Tomorrow is the 419th day . The same time frame again....

 

[rahuld2976]

Re: Does Fibbonacci levels helps you to find out the bottoms?

Hi firiend'
Yes. this happens each and every time with small variations ! From 6357 to 2252 , and from 2252 to now, please try to find out the number of days. Tomorrow is the 419th day . The same time frame again....

So you are counting all days or just market days ??

 

[anayash]

Re: Does Fibbonacci levels helps you to find out the bottoms?

Dear one,
I am still a learner and not a learned one ! My humble answer to this is that while keeping an eye on the fib rations, we also have to keep an eye on the time frame.From the recent low or high, there is a specific number of days which meet the particular ratio. As we know , the fib sequence is;
1 1 2 3 5 8 13 21 34 55 89 144 233 377............. These are also the important days when the market achieves a particular retracement or ext. ratio.

seems interesting counting the no. of days!! but not convincing enough!! can u post some charts plz?

 

[vijay@dsun]

Friends
Fibo does makes more sense ,but as one of the friend said,the open n low too matters the most.
Fibo retracements r drawn in different types & typically most of them take a high n low of a rally to predict the future of that particular stock.

I personally take the highs n low of a particular candle (especially a spikyyy candle )in a higher timeframe (maybe 60 mins ++) for commodity trades.
With that candle's fibo , the target goes to 161.8% , 261.8% & 423.6% . one of these 3 levels 'll be the reversing points.

regards

Vijay@dsun

 

[mehtaka]

Hi,

Everything that goes up comes down & vice-versa. No one can change that for sure. The million dollar question is when exactly will the reversal occur?

Does Fibbonacci Retracement levels helps you to find out the bottoms?

Plz share ur views...

Regards

Hello Frnds,
I personally think that Fibbonacci retracement is not the tool to find the Top/Bottom. No one can predict that.
It is basically used to know till when the price can retrace back. Its for the entry level that one has missed out.
For instance. If someoe has missed out a buy position, he can wait for a price to reteace back to 50/63% for entry level.
Question could be asked that how we come to know that prices will strt falling from certain levels.
Answer would be, its on our analysis. Like i prefer the candel stick pattarn, ofsometimes MACD..etc...
Suppose makert has rallied up side...and we have missed out the buy entry, we need to wait for the reversal /pattern formation, suce as hammar/doji/berish engulf pattarn, that poisnt could be taken as the top point, until an unless it is not broke. that way one can fined out the retrace ment.
hope you got my point frnd.