Fibonacci Retracement and Extension for strongly trending instruments..
As Nifty 50 is in strong uptrend on Monthly charts, below are data's which shows how Nifty is respecting its 38.2% to 50% retracements from 2008.
Trading idea using this retracements are buy @ 38.2% with SL below 50%..or safer side to buy at mid point of 38.2 and 50%, place SL below 50%.. Target for both cases will be 61.8% extension.
Phase 1: From 20th Nov 2008 low of 2553 to high of 6307 in 5th Nov 2010.
38.2% is 4872..
50 % is 4430..
mid point is 4651..
Results..Nifty retraced to 4624 on 30th Dec 2011..and then bounced back to original trend ..and met target at 61.8% extension ( 8626 before Mar'2015.)...
Phase 2 : 2oth Feb'20116 nifty raised from 6980 to 8896 on 9th Sep'2016..
38.2 % is 8164
50% is 7938..
Midpoint is 8051..
Results ..nifty retraced to mid point 23rd Dec' 2016, not touched SL below 50%..and met target of 61.8% extension (at 10080 around Oct'17)..
Phase 3: 23rd Dec'2016 7985 to 11069 in 25th Jan 2018...
38.2 % is 9890
50 % is 9527
mid point is 9708..
Will history repeat it here in Nifty ?? taking support at mid of retracements and meet target of 13000 ???
It may be used only for investment purpose ..SL is also very small around less than 200 points..if its get through , then reward will be around 3300 points.....
We may fail if the fall has velocity similar to 2008...
As Nifty 50 is in strong uptrend on Monthly charts, below are data's which shows how Nifty is respecting its 38.2% to 50% retracements from 2008.
Trading idea using this retracements are buy @ 38.2% with SL below 50%..or safer side to buy at mid point of 38.2 and 50%, place SL below 50%.. Target for both cases will be 61.8% extension.
Phase 1: From 20th Nov 2008 low of 2553 to high of 6307 in 5th Nov 2010.
38.2% is 4872..
50 % is 4430..
mid point is 4651..
Results..Nifty retraced to 4624 on 30th Dec 2011..and then bounced back to original trend ..and met target at 61.8% extension ( 8626 before Mar'2015.)...
Phase 2 : 2oth Feb'20116 nifty raised from 6980 to 8896 on 9th Sep'2016..
38.2 % is 8164
50% is 7938..
Midpoint is 8051..
Results ..nifty retraced to mid point 23rd Dec' 2016, not touched SL below 50%..and met target of 61.8% extension (at 10080 around Oct'17)..
Phase 3: 23rd Dec'2016 7985 to 11069 in 25th Jan 2018...
38.2 % is 9890
50 % is 9527
mid point is 9708..
Will history repeat it here in Nifty ?? taking support at mid of retracements and meet target of 13000 ???
It may be used only for investment purpose ..SL is also very small around less than 200 points..if its get through , then reward will be around 3300 points.....
We may fail if the fall has velocity similar to 2008...
