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Fibonacci Retracement

Classic Double Correction PatternThis is a classic example of Double correction (Double three) in HDFCLIFE. Marked in the first box, we can see Flat Correction where wave B is retraced to the 81% level. We are fulfilling the minimum requirement (61.8%) of wave B. Here in wave C, we see three waves. This is the first hint of an upcoming complex correction. The whole wave is marked as W here. In the second box, there is a perfect Zig-zag pattern. Wave B is retraced to 50% here. Also, we can see three waves in wave C, which gives us wave Y. These two waves are connected by wave X which is retraced to 111%. This is the best example of Double correction. This analysis is for educational purposes only. This analysis is based on Elliott Wave theory and Fibonacci analysis.
NSE:HDFCLIFEEducation
by theprofityogi
Falling Knife stocks-How to identify them?I have discussed in previous post about what exactly falling knife stock is with a case study. The next question would be how would an investor know that stock is a part of falling knife category? To identify such stocks, I feel you should know about 2 concepts/indicators which are Moving averages and Fibonacci retracement. I will try to make you understand these concepts and also the levels where averaging/investing can be started. 1. Fibonacci(Fib) is a mathematical concept which governs the entire universe, even our stock markets. I can't explain the entire scientific concept here so just sticking to stock market. Fib retracements help investors identify support and resistance for stock. There are 2 golden ratios which every investor must know, 38.2%(0.382) and 61.8%(0.618). When a stock is in uptrend, 38.2% is the level where most stocks retrace upto. 61.8% is considered as last ray of hope for bounce in retracement. Any stock which has fallen below 61.8% is considered weak. 2. Moving averages(MA) are indicators which are continuously changing with moving stock market. These are an average of prices over a time period, hence Time frame is important. There are many types of moving average, we use mostly simple and exponential. When I say 20 Day EMA, it is Exponential average of 20 days of closing price of stock or when I say 200 week SMA, it is simple average of 200 weeks closing price. Exponential is more used than Simple moving average which has scientific reason behind it so if you are curious, you can search for it. 200 Week moving average is considered as last ray of hope for investment. A fall below 200 Week moving average or 50 Month EMA indicates strong bearishness. 3. I have seen stocks reach from top to bottom and top again. Tata motors, HDFCAMC being few famous examples. Even, Most of real estate, PSU banks stocks are reversing. So, equity is beautiful, wild and highly unpredictable. However, A stuck investor should wait for monthly closing above 61.8% to start averaging in such stocks. Also, a closing above 200 Week EMA will slightly indicate return of bullishness and that's where reversal traders should think of investing I feel this much knowledge is enough for now. If you have got some enlightenment from above information, lets apply this knowledge on one stock where I know many many investors are stuck, Rajesh Exports. How do I know? I saw the shareholding pattern and that's where I was shocked to see the number of shareholders increase from 45000 odd to over 2 lakhs in the past 9 months! Starting with fundamentals, Rajesh Exports Ltd is 4 decade old manufacturer of Gold and Gold Products available at a PE of around 9 and sales growth of 20% in last 3 years. All the ratios feel nice to me except the operating margin which is below 2% consistently which has led to drop in EPS which is major concern in the stock. Technically, stock had a 52 week high of 1030 in Feb 2023 and it is now available at 360 odd which is more than 60% wealth destroyed. And as I said, the number of shareholders have grown 5x in the same time. (Note that FII, DII holding has reduced in same period). If i see now from a non-investors perspective(psychology explains that investor can never see the bearishness), the stock has formed a beautiful double top and broken its neckline which was 61.8% of fib retracement all ready for a further fall and I see no support till 270-300 zone(sorry investors). It is also below 200 week moving average-red wavy line(if you check monthly chart, it is below 200 month moving average as well). A perfect example of Falling knife. What next? If I were an investor, My last SL would have been 525 which is 50% retracement. Since, the stock is below 61.8% retracement , there is no chance of averaging at this moment. Hence, I feel investors should wait & watch until stock moves above 440 before averaging/entering. Don't jump in it. Wait for a big bullish monthly candle before averaging. Also.... As promised,, I am sharing you names of stock which i have identified to be part of this unloved category. As an homework, do check fundamentals and reversal levels based on what we have discussed above. The stocks are GRINFRA, TCNSClothing, Metropolis, Luxindustries, Polyplex, HLEGlasscoat, Deltacorp, Barbequenation. If you are a curious investor, even you can find such stocks and do let me know in the comments below. I would like to discuss any doubts regarding the concepts, idea or anything related to stock market so feel free to comment. Keep investing, keep minting. India has a very big future ahead so these are the best few years to invest in India.Be a smart investor because it is important that you choose the right stock to meet your financial goals.
NSE:RAJESHEXPOEducation
by chartistamey
10
'SWING' your losses into profits with 'SWING' trading strategiesIn prior posts, we have covered some great teachings about the market and, in this post, we will elaborately cover the swing trading strategies. Let's start !! ->Definition of swing trading -: Swing trading is generally referred to as a trade carried out for a short time. Swing traders do not wait till the price action opposes their direction, they are known for their prior moves. They are good at identifying the shifts in market trends with the help of various techniques which are explained throughout this idea. Swing trading strategies include the use of Fibonacci, Bollinger Bands, Channel Trading, Moving Average, MACD crossover, and better understanding of chart patterns like Head & Shoulder, Flag, and Triangle Patterns. We will discuss chart patterns, later on, now let's focus on the indicator strategies. - >Swing trading strategies -: ->Fibonacci Retracement: The stock price tends to retrace, and swing traders use this retracement as an opportunity to enter a trend. The retracement levels could be identified using Fibonacci Retracement, all you need is to identify the prior trend and if the price retraces to the 0.618 level and again resumes the trend jump on it and ride the position till it reaches 0.236 level. ->Bollinger Bands : Most probably, the stock price tries to move in the Bollinger band, which is used by swing traders to initiate and terminate their position. Firstly you need to identify the major trend, let's suppose it's bearish than when the price reaches the upper bound and there is a formation of a bearish candle you could initiate a short position also when a bearish candle is formed at the median, there also you can initiate a short position. ->Channel Trading: Sometimes, stock price trades in a channel now this channel is used by swing traders i.e. when the trend is bullish they try to take long position at the lower range of channel and book partial profits on median and wait for the price to reach the upper end. ->Moving Average: Here traders identify the major trend and take position according to it, with help of crossovers they generally prefer 10DEMA crosses 20DEMA. ->MACD : This is a simple strategy where the trades are initiated when there is MACD crossover but the cross should correlate with the trend. My Observation-: These strategies could be more accurate if used to trade with the trend, i.e. if the stock is in an uptrend only take positions for a positive signal and just avoid negative signals. Another basic strategy is to take a position when a script moves above the swing high or below the swing low, here the only thing to ponder is to manage your risk. Don't take over positions understand your risk appetite then take positions.
Editors' picks
NSE:NIFTYEducation
by Chaser30
20
You Might Have Heard A Lot About This Hey Everyone, Today we are again with a lot of information and a bunch of topics, so consider following us for regular ideas and market updates Let's go Strictly into the idea So What is a Fib Retracement ? Now You might think it is just making lines and deciding on support or resistance but it's way too far, as shown in the thumbnail " The Major Levels " it means the levels that can be a support or resistance and can be found easily as shown. So Now we have learned What is Fibonacci Retracement, Now Let's Know How to use It ? To use fib retracememts we need to first find a low and a high level and then set 1.000 and 0 and then just seek at The Major Levels to Trade. This was just an overview if you want a more detailed idea in which we will discuss Fibonacci Extensions , Fibonacci Number and Lines tell me in the comments and i will do for sure Thanks Bye - Bye
NSE:NIFTYEducation
by MAYANKTECHRESEARCHING
2
What is Fibonacci retracement?If you have been in the market for some time, you may have heard of “Fibonacci retracements” . Today we are going to share an informative write-up along with a few exhibits that may help you solidify your understanding of this concept. Table of Contents: 1. What are Fibonacci levels? 2. What is the significance of retracement levels? 3. How to find retracement levels? 4. How to use the retracement levels? Without further ado, let’s jump in! What are Fibonacci Retracement levels? The retracement levels are horizontal lines that indicate areas where the price could stall or reverse. These horizontal levels can act as potential support or resistance levels. They are based on Fibonacci numbers. Each level is associated with a percentage which means how much of a prior move the price has retraced. The retracement levels are 23.6%, 38.2%, 61.8%, and 78.6%. While 50% is not a pure Fibonacci ratio, it is still used as a support and resistance. This is because people regard it as an important level. The price won’t always bounce from these levels. They should be looked at as areas of interest. Hence, the Fibonacci retracement should be used as a confirmation tool. Significance of Fibonacci Retracement levels Different traders use this tool differently but the most common usage is as follows: Place entry orders Determine stop-loss levels Set price targets For example, A stock may be in an uptrend. After a move up, it retraces to the 61.8% level. Then, it starts to go up again. Since the bounce occurred at a retracement level during an uptrend, long positions can be initiated with an optimal stop loss. Finding Fibonacci Retracement levels In order to find the retracement levels, you have to identify the recent significant swing high and swing low and then plot the Fibonacci accordingly. For uptrend: First, select the swing low and then the swing high. For downtrend: First, select the swing high and then the swing low. Exhibit: Fibonacci retracement in an uptrend Exhibit: Fibonacci retracement in a downtrend How to use the retracement levels? If the price is approaching a Fibonacci level, you should look out for the following things at the point of interaction or in the vicinity of the level. Reversal candlestick patterns Rising volumes Moving average RSI divergence Previous support/resistance level Conclusion: Adding Fibonacci analysis with other common methods of technical analysis can be useful for adding confluence to a trade. Thanks for reading! Hope this was helpful! See you all next week. 🙂 – Team TradingView Feel free to check us out on Twitter and Instagram for more awesome content! 💘
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NSE:PIDILITINDEducation
by TradingView
21
Can you predict such falls? Fibonacci Retracements - (bad audio)Market fall may have taken few by surprise, but followers of price action techniques should have this scenario in their plan. Trend analysis (or Elliot wave analysis) along with Fib Retracements could be of enormous help if used in tandem with price action. They at least give you minimum target and levels, so that you are able to ride the trend and also do not make impulsive entry decisions. (Disclaimer: the audio quality is really bad. Somehow the system is not allowing external mic and using internal mic which is capturing lot of noise. Tried typical methods but not working. If you have solution let me know)
NSE:NIFTYEducation
by jay21shah
U-TURN Resistance converts into Support (EDUCATIONAL -AARTIIND) Aarti Ind. ltd. This stock has taken Resistance twice at same level, then it consolidated as a parallel channel at that same zone, and then it given good breakout from parallel channel along with good intensity of volume, Now it has retraced almost 78.6%, co-incidentally (1) same resistance zone, (2) Parallel channel's top, (3) Support trend line and (4) 200 DEMA, all are there at similar point location, All these 5 conditions met at same level that can provide good support. This scenario makes probabilities very strong each time. where stop loss is too low and Reward is too Good. Overall scenario Perfectly U-turn from valid fibonaccy level 0.786% Daily macd line uptick and also converging towards positive Good support zone Support providing 100DEMA also at same responding zone Parallel channel scenario Support Trend line Disclaimer I am not sebi registered analyst My studies are for educational purpose only Consult your financial advisor before trading or investing I am not responsible for your profits and losses
NSE:AARTIINDEducation
by RK_Chaarts
16
BEST PLACES TO LOOK FOR HIGH PROBABILITY TRADESHere are a few setups that I use in my day to day trading. They work well in all the timeframes and in all types of markets. I am only showing bullish scenarios due to space constraint but one may also look for bearish scenarios which work in the same manner. Like Down trendline or Downward sloping channel; downward sloping MA; breakdown of a range; and price retracement back up to 50% of the down move. Sometimes these setups also work in collaboration with each other. Like price pulls back to the MA and this level also coincides with a potential support zone or this level is also the 50% retracement of the prior up move. In these cases the trading opportunity will have very high probability to make money. Are you still thinking that what patterns to look for at those places to take trades? Please refer my previous idea tagged to this post. Just look for those candlestick patterns as your trigger and you are good to go. I hope this post will add to your knowledge and don't forget to like and comment to encourage further writing. Regards JJSingh
NSE:NIFTYEducation
by Bravetotrade
13
Fibonacci Masterclass - Fibonacci Retracement and ExtensionHi guys, I have finally completed the thread on Fibonacci (Though it took longer than usual). I have tried with the best of my little knowledge to create this thread. This has everything you need to know about Fibonacci retracement and Fibonacci extension. Also, if the thread is free that doesn't mean I have compromised with the quality. All you have to do is just read this thread again and again until you get a good grasp of it. everything. Table of Contents: 1. What Are Fibonacci Retracement Levels? 2. Significance of Fibonacci Retracement levels 3. Finding Fibonacci Retracement Levels 4. How to use the Fibonacci retracement levels? 5. What are Fibonacci Extensions? 6. Significance of Fibonacci Extension levels 7. Finding Fibonacci Extension levels 8. Difference Between Fibonacci Retracements and Fibonacci Extensions What are Fibonacci Retracement levels? • Fibonacci retracement levels are horizontal lines that indicate areas where the price could stall or reverse. • These horizontal levels can act as a potential support or resistance levels • They are based on Fibonacci numbers. Each level is associated with a percentage which means how much of a prior move the price has retraced. • The Fibonacci retracement levels are 23.6%, 38.2%, 61.8%, and 78.6%. • While 50% is not a pure Fibonacci ratio, but it is still used as a support and resistance indicator. This is because people worldwide regard it as an important level. • The price won’t always bounce from these levels. They should be looked at as areas of interest. Hence, please use the Fibonacci retracement as a confirmation tool. Significance of Fibonacci Retracement levels Fibonacci retracements can be used to: • Place entry orders • Determine stop-loss levels • Set price targets For example, A stock may be in an uptrend. After a move up, it retraces to the 61.8% level. Then, it starts to go up again. Since the bounce occurred at a Fibonacci level during an uptrend, you can enter long positions with a stop loss just below the Fibonacci level or at the candlestick low. Finding Fibonacci Retracement levels In order to find the Fibonacci retracement levels, you have to find the recent significant Swing High and Swing Low. • For uptrends, select the Swing Low and then the Swing High. • For downtrends, select the Swing High and then the Swing Low. Example: Fibonacci retracement in an uptrend Example: Fibonacci retracement in a downtrend How to use the Fibonacci retracement levels? If the price is approaching a Fibonacci level, you should look out for the following things at the point of interaction or in the vicinity of the level. • Some reversal candlestick pattern • Volume is above average. • Moving average • RSI divergence • Previous S/R level or pivot level The trade will be a high probability trade if some of these factors create a confluence zone. What are Fibonacci Extensions? • Fibonacci extension is a tool that can be used to find price targets or estimate how far a price may move after the retracement/pullback is over. • Extension levels are also possible areas of interest where the price may stall or reverse. • It can be used to find projected areas of support or resistance when the price is moving into an area where other methods of finding support or resistance are not applicable or evident. • If in a stock, a new high/low occurs, the trader can use the Fibonacci extension levels to get an idea of where the price can go. • Fibonacci extension levels can be calculated to give the trader ideas on profit target placement. Significance of Fibonacci Extension levels: • Fibonacci extensions can be used for any timeframe and in any market- stocks, commodities, cryptocurrencies, etc. • Fibonacci extension levels indicate a price area that will be significant for the stock after the pullback/correction is over. • Extension levels can be drawn on different price waves over time. When levels from these different waves converge at one price, that could be a very important area. Finding Fibonacci Extension levels In order to find the Fibonacci extension levels, you have to find the recent significant Swing High and Swing Low. • For uptrends, click on the Swing Low and then on the Swing High. Then go to the Fibonacci setting and click on reverse. Or if your software directly has the extension tool then it’s even easier. • For downtrends, click on the Swing High and then on the Swing Low. Then go to the Fibonacci setting and click on reverse. Example: Fibonacci extension in an uptrend Example: Fibonacci extension in a downtrend Difference Between Fibonacci Retracements and Fibonacci Extensions • Fibonacci retracements provide levels for a pullback whereas Fibonacci extensions provide levels to move in the direction of the existing trend. • For instance, a stock goes from 50 to 100, and then back to 75. The move from 100 to 75 is a retracement. If the price starts rallying again and goes to 150, that is an extension because the price moved past the previous swing high which is 100 in this case. This is everything you need to know about Fibonacci retracement and extension levels. This thread is more than enough to make you profitable. Keep reading and revising until you learn everything written in this post. I hope you find this post useful. Also, if anyone is interested in getting a consolidated PDF version of this thread, then you can message me, I'll provide it. Disclaimer: This is NOT investment advice. This post is meant for learning purposes only. Invest your capital at your own risk. Happy learning. Cheers! @johntradingwick
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NSE:BANKNIFTYEducation
by johntradingwick
145
Good opportuniy to invest in GOLD.All observations on chart. MULTIPLE CONFIRMATIONS & EXPLANATIONS OF DRAWINGS As you can see gold bounced tom 38.2% fibonacci level a good level to buy the dip. 19% correction from the top till pre covid levels Falling channel pattern visible on charts, usually gives good move on the upside. Double bottom pattern breakout given today. Price comfortable above 20 moving average & made a new swing high Overall this is attractive price to enter from long term view.
TVC:GOLDEducation
by varadtambolkar
6
Bank-nifty short term harmonic Forecast ( Time zone Forecast))It seems Bank nifty is in Uptrend I have done a study on harmonic patterns. As of now it is at the mid of CD leg so following things may happen... 1) If it sustain above 29412 then it may give a TGT 29550 , TGT 29825 , TGT 30170 , Final TGT 30625 2) Now if it start reversal from this level i.e. 29790 and breaks 28550 then we will get a TGT 27990 3) If It start reversal from 29790 level and breaks 28550 then we will get a TGT 27745 4) If it start reversal from 30200 level and breaks 28550 then we will get a TGT 27532 The probability reversal time zone is 26th to 27th December 2020
NSE:BANKNIFTY1!Education
by absu21
ITC Deatiled Elliot Wave AnalysisDISCLAIMER:There is no guarantee of profits nor exceptions from losses. Technical analysis provided on the chart is solely the personal views of my research. You are advised to rely on your own judgments while taking any investing/Trading decisions. Past performance is not an indicator of future returns. Investment/trading is subject to market risks. Seek help of your financial advisors before investing/trading. I may or may not trade this analysis. Details in description. -------(((((Please LIKE & Donate Coins to support my analysis)))))------- Target price for wave v or wave (C) was actually 150 based on Fibonacci retracement plotted between wave 3-4 Planned video was around 10-12 minutes, plotted waves and targets for wave v(wave C) didn't got save so went ahead of time and become 16 min :D
NSE:ITCEducation
by Niftydirection
3
Dow Corrective Wave B and C PendingDISCLAIMER:There is no guarantee of profits nor exceptions from losses. Technical analysis provided on the chart is solely the personal views of my research. You are advised to rely on your own judgments while taking any investing/Trading decisions. Past performance is not an indicator of future returns. Investment/trading is subject to market risks. Seek help of your financial advisors before investing/trading. Just for educational Purpose
TVC:DJIEducation
by Niftydirection
DAX Corrective Elliot Wave looks to be StartedDISCLAIMER:There is no guarantee of profits nor exceptions from losses. Technical analysis provided on the chart is solely the personal views of my research. You are advised to rely on your own judgments while taking any investing/Trading decisions. Past performance is not an indicator of future returns. Investment/trading is subject to market risks. Seek help of your financial advisors before investing/trading. Just for educational Purpose
XETR:DAXEducation
by Niftydirection
Reliance Elliot Waves, Gap analysis, Head and Shoulders PatternDisclaimer: Just for Study purpose, trading/investing not recommended on this analysis it can be wrong. Reliance gives classic examples where it shows similar targets with help price action and Elliot waves. Inverse Head and shoulders breakout target seems to reached As 3rd Elliot wave is extended 5th Wave should be normal (not extended) During Run up it created Breakaway Gap, Runaway Gap, Exhaustion Gap
NSE:RELIANCEEducation
by Niftydirection
7