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Fibonacci

Scenario - 1 (Ending Diagonal) Trade Setup technique(live)...Before getting started for high opportunity Trade Setup. Let's understand the about Diagonal. What is exactly Diagonal: It is a five-wave overlapping structure, wherein each wave subdivides into three smaller waves. It is typically an ending or terminating wave pattern and is found in the fifth wave position on an impulse wave and the wave C position of A-B-C formations. A Diagonal Triangle is normally contained by two converging trend-lines. A Diagonal Triangle is normally contained by two converging trend lines. Rules of Diagonal: A Diagonal Triangle is made up of five waves. Each wave within a Diagonal Triangle must subdivide into 3 waves. Wave 3 cannot be the shortest impulse wave of waves 1, 3 and 5. Diagonal Triangles can only occur in the fifth wave position of impulse waves and the wave C position of A-B-C formations. Diagonal Triangles are found only at the termination points of larger wave patterns. This is earlier considered Ending-Diagonal for multiple reasons. One of the reasons is, we will get higher reward than risk in short side. Let's assume that wave B of (iii) of diagonal end 17269 nearby and then target is has high reward for wave C of (iii)wave. Calculation: 17490-17269 = Risk 221 points Reward 595 points = 17269-16674 Aggressive trader or a trade who are able to risk can sell 17190-17260 is best levels but safe traders can enter 17270 on side of short selling. I will also update follow up time to time on this post.
NSE:NIFTYEducation
by Trade-Technique
26
Fibonacci Trading Strategy : Beginner's to Advanced GuideWhy Fibonacci Tools? Fibonacci tools can help traders to determine upcoming support and resistance areas. Unlike other indicator which works on historical data and mathematical calculation considered to be as Lagging Indicator. For Example: MACD, Stoch RSI, Bollinger Band etc. Where as FIBONACCI tools does not come from any formula and historical data, it is predictive in nature and helps to determine potential support and resistance before price gets there. That’s why Fibonacci tools considered to be leading Oscillator. I will not go in details how this numbers are shown up, you will get theory part online easily. I think our main objective to learn how to use in our trading. So, let’s get Started. MARKET TRENDS The key to successful trading with Fibonacci is to trade in the direction of the overall trend. As we all know that there are 3 Market trends. 1.UpTrend. 2.DownTrend. 3.Sideways. If you ask me what is current BANK NIFTY Trend, I will say at what Time Frame. Why? Because at 1 Week HIGHER TIME Frame shows Uptrend Market and 1 Hour time frame shown Down Trend market. You can also use Moving Average (EMA 50), to distinguish trend. Price> 50 EMA Uptrend and Vice versa. Once you Identified Trend of Market, we are good to go to next step. Higher Time Frame: Lower Time Frame: RETRACMENT LEVELS The most popular retracement levels are (23.6%, 38.2%, 50%, 61.8%, 78.6%). Fibonacci retracement levels are mainly used to determine support and resistance levels. When market retrace from 23.6 % and 38.2% considered to be as shallow pullback and leads to highly trending market. Whereas 50%, 61.8% and 78.6 % considered as Deep Pullback and leads to weak trend. 61.8% is very important level because of Golden Ratio and act as psychological number where Profit booking and Reversal is expected. How to Draw? Now we all know how to identify Trend and what are the important retracement levels. Now we will look how to draw Fibonacci Retracement. “ALT + F” or “Ctrl + K” and type Fib then Select it. Now select Swing High and Swing Low from the chart. Note: I am considering SH and SL as a LEG. You will be having doubt which Leg to Select, answer is simple you can select as many legs and find Confluences between Leg. Which will act as great Support and Resistance. ENTRY : Ok, So I will be talking about entry based on your personality. 1. Aggressive Trade As soon as market touches 61.8 % levels, you enter and I think this is risky way to enter but your reward will be higher. 2. Conservative Trade You will be waiting for Confirmation and place your order and this ideally best way to enter but reward is lower. And I will dig deeper into confirmation for the trade. Confirmation 1. Using Indicator: Moving average Crossover(9EMA,25EMA), MACD, RSI, VWAP etc. 2. Using Candle Stick: Pin Bar, Engulfing etc. 3. Using Support and Resistance: Check for S/R area. 4. Using Trend Line I Think you get an idea what confirmation you can use, if you are indicator trader use any one of the indicators mentioned above and if you are Price action Trader you can use Trend Line, Support and Resistance, Candle Stick etc. STOP LOSS This is a Tricky Part as there are many ways you can use Stop Loss but many of them can Stop Out from volatility. My Personal Favourite is 1 ATR from retracement level. So, you are considering Average Price movement and slightly Below that level to avoid market Fluctuation. For Example: 1 ATR Value is 25 and your Stop loss will be 28. Other Stop Loss Technique: 1. Previous Candle Low. 2. Support/ Resistance. EXIT: If you’re Indicator Trader you can use 1. Moving Average Crossover (9EMA, 25 EMA) when 9 crossing 25 you exit. 2. MACD Crossover. etc. But I will recommend to use 3 PART Method. To Exit from your trade. We will be using another FIBONACCI Tools which is FIBONACCI EXPANSION. I will suggest to modify setting and chose only (0, 0.168, 1, 1.618) and don’t ask me why only this number, these are the widely used number for target and works in every time frame. Using this tool is slightly different then Fibonacci retracement where we have to choose two point (Swing High and Swing Low). In FIB EXPANSION we need 3 Point (Swing High, Swing Low, Retracement). It will Project 3 Target (0.168, 1, 1.618). So, our Strategy will off load 1/3rd of our qty at 0.168 level and trail stop loss to our entry point and wait for 2nd target and off load 2/3rd and last qty at 1.618 Level. In this way we will booking our profit and waiting for remaining qty to achieve remaining target. CONCLUSION Every Strategy is 1/3rd part of Trading Plan which means RISK Management and Psychological plays crucial role to master trading. Which many of the traders neglect and suffer losses if you guys interested in RISK MANAGEMENT and PSYCHLOGICAL Lessons. Drop Down Comment Below, if you want more Strategy like these and Stock ideas don’t forget to follow me on Trading View. Peace Out.
NSE:BANKNIFTYEducation
by kleympermina
43
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
HOW THE HARMONIC PATTERNS HELP IN OPTION TRADING AND VOLATILITYThe underlying chart gives us the data but it is important to look into the options chart for the trade. We normally wait for the breakouts to happen in the underlying chart but they happen way ahead in the options chart. By the time we take a trade in the options, it would have been late in options pricing. Below is the bank nifty options chart You can see that the breakouts are happening in both charts. Normally, the terminal bar price for a XACBD bearish butterfly pattern will be at the 1.618 fib ratio. However, for the shorts who enter at this level, the stop loss will be the next fib ratio i.e., 2 in this case. Shorts who entered at 1.618 would have exited in a loss at 2 level, then the price reversed drastically. The long traders who thought there would be a short-covering are trapped mercilessly. This pattern would have benefitted the traders who entered at point B (164.5) and trailed until 1.618 level ( D=197). The price pushed above until 2 (212) but hasn't closed above it and came down quickly. This trade would have given at least 20% for the longs. What I've learned from the harmonics in the volatile and fast-moving scripts is that always mark stop-loss levels also and wait for the price action to proceed. This post is just to show the importance of harmonics in options trading and for educational purposes. Give a like and leave a comment if this helps you. Happy trading :)
NSE:BANKNIFTYEducation
by Sanjan91
2
Bank Nifty !! Elliot WavesThe analysis base on Elliott Wave Theory in weekly and daily time frame. Elliott wave has three parts : a) Impulse wave (Point 0-1, 2-3, 4-5), which net travels in the same direction (higher high) as the larger trend, always shows five waves in its pattern. b) Corrective wave (Point 1-2, 3-4), on the other hand, net travels in the opposite direction (higher low) of the main trend. c) Followed by three waves in a correction (A,B,C) - Lower High and Lower Low. The Elliot waves combined with fib retrenchment give a broader idea to identify trend and reversal. Disclaimer : Consult financial advisor before trading. Thanks
NSE:BANKNIFTYEducation
by Indieconomic
1
Importance of Multiple Confirmations-Indicator Free AnalysisIndicator Free Analysis with Fibonacci Ratio Integration: The above is a daily chart of Alkyl Amine, a quality monopoly stock with clear cut competitive edge in its respective industry. We can observe that a previous resistance was present at 4000 levels which was broken with big bullish harami green candles accompanied with volume. A basic rule of chart analysis is whenever a stock breaks out of its resistance, the resistance is transformed into a support. Thus the stock again comes back to the resistance level in order to check if it has turned into support. This is called retest or throwback. Here the stock has tested the 4000 levels 2-3 times and is now trying to head upwards. In addition, if we draw a fib chart, we can see that the stock is taking support at the 0.618 levels which can be regarded as ultimate support zone. We can also observe that a bullish Flag and Pole is formed which indicates upmove How to trade the stock? The stock can be traded in two ways depending on one's risk appetite and experience. Entry: For risky and experienced traders: They can enter the stock after a bullish candle (such as that of today is formed) is formed with a SL below 3900. For safe traders: They can enter the stock as soon as the stock gives a breakout above the flag i.e. formation of a bullish green candle with closing above flag. Benefits of early trade: By entering early, the experienced or risky traders decrease their stoploss to a great margin. Thus it is possible for them to re-enter if the stock hits the StopLoss and again moves up. Benefits of Confirmed Trade: By entering after the breakout and retest of the Flag pattern, a safe trader increases the probability of success to a great extent. Where should the target be? The target should be the tip of the Flag i.e. 4750. Where should be the Stop Loss? For the early entree, the Stop Loss should be just below the support trendline of 4000 i.e 3900 For the safe trader, the Stop Loss should be placed just below the upper trendline of the Flag i.e. around 4100-4150 Hope you all learnt something..Support me by sending some cheers and liking all my ideas .
NSE:ALKYLAMINEEducation
by tksthathachari
3
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
The reason behind Fibonacci retracement in stock marketsWhat is the reason behind Fibonacci retracement in stock markets? As a traders we all know Fibonacci that the Fibonacci ratios, i.e. 61.8%, 38.2%, and 23.6%, finds its application in stock charts. Fibonacci analysis can be applied when there is a noticeable up-move or down-move in prices. Whenever the stock moves either upwards or downwards sharply, it usually tends to retrace back before its next move. The reasons that I come across why this uncertain market follows the Fibonacci retracement . The stock market only involves demand and supply, but how this golden ratio-number can govern the price movements, like most of us don’t have the mathematical knowledge. But psychology we all think in a similar way . The two reasons that I come around are: -Stocks do NOT "follow Fibonacci retracement." Stocks move around randomly, together with some bias due to overall unpredictable market conditions. Sometimes these random movements correspond to a recognizable pattern on accident, and when they do people notice and say "look at that, a pattern!" Then they give these patterns fancy names like "Fibonacci retracement," and start looking for them in other places, which they will certainly find if they look hard enough. Sadly, any attempt to use these patterns in advance to predict future price movements fail. Sometimes they match on accident, and just as often they don't. If these patterns worked, then they would quickly be used until they stop working. E.g. If the pattern actually, correctly, showed that the stock price will go up next week, then a whole bunch of people will start buying it THIS week, causing it to go up sooner, and ultimately erasing the pattern. -There are two schools of thought - one that believes in technical analysis, and one that doesn’t. from the view of the latter With many people believing in the significance of the stock price reaching or crossing certain levels - be it fibonacci levels, support lines, crosses of death, or whichever, those people react by buying or selling, thereby creating a self-fullfilling prophecy. If you want to make money in the market, you need to be aware of these reactions, and act accordingly - sometimes even supporting the supposed beliefs. Personally, I think it’s like astrology - great if it helps you, but there is nothing behind it. Again, look forward to the other side explaining you why it’s real, and make up your own mind. Thanks for reading it. Please share your thoughts on things..
NSE:SBICARDEducation
by Trader3301
4
GreenLam. How to set Targets when stock are at all time high.Understanding the overall structure. :- Here it is simple higher high higher low structure. Stock currently above previous higher high. How to Set Targets using Fibonacci extensions. First Identify the swing. here it is 308 to 1389. then place Fibonacci tool. After placing look at 38.2% 50% 61.8% levels if the stock has faced major resistance or support or consolidated for some time then the swing identification is correct. Look for extension levels. You'll get your targets. Looking at the momentum review the potion at each extension levels .
NSE:GREENLAMEducation
by varadtambolkar
4
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
NSE:BANKNIFTYEducation
by johntradingwick
145
wxy,second correction y.use wave B bounce to exit long.After momentum divergence and 2-4 trend line breach bank nifty trend has been side ways to downside. so far it looks like bank nifty is making double correction WXY, of which wave W and X is done and Wave y sub-wave A is done and Wave y sub wave B is going on,which should be used to exit long's previously hold. Now where this wave B will end cannot be predicted,but if current bounce manages to clear 61.8% retracement of wave A(one candle close above the level) than we can ascertain a this correction to be a Flat one.From there on depending upon the higher retracement levels sub-form of Flat can be derived. In either case of Flat or Zigzag one should avoid longs and if previously holded then it should be liquidated as wave C decline can take prices to wave A low and even break it.
NSE:BANKNIFTYEducation
by UNDERDOG-29
Mysterious nature of market.Where will B end??????Negative divergence on RSI for wave 3 and wave 5 was indicating weakness which is confirmed when wave 2 & 4 trend line got broken in less time than wave 5 took to form.However wave 4 low's has not been taken taken out in less time than wave 5 took to form indicating current fall is correction and not major trend reversal. Question is what form will this correction take. 1)Zizgag 2)Flat(If flat than which flat) To simplify this question if prices manages to retrace 61.8% (15747) wave A fall, then we can rule out the possibility of Zigzag,if not than we can rule out the possibility of Flat.Hence key level to watch out for is 15747.If we get one candle closing above 15747 than we weill get confirmation for Flat correction,which will open 3 scenarios 1)Wave B retracing wave A between 100-123%,then following wave C fall will retrace wave B more than 100%,meaning wave A lows of 15537 will be broken.This will then be called irregular flat correction. 2)Wave B retracing wave A between 81-100%,then following wave C fall can retrace wave B by less 100%(incase of C failure),between 100-138%(incase of comman flat),more than 138%(incase of elongated flat) 3)Wave B retracing wave A between 61-80%,then following wave C fall can retrace wave B by less than 100%(incase of double failure),between 100-138%(incase of B-failure),more than 138%(incase of Elongated flat). For Zigzag scenario,current wave B bounce terminating below 15747, will open 3 scenarios. 1)Wave C retracing 61.8% of wave A from wave B top(incase of truncated Zigzag) 2)Wave C retracing 100% of wave A from wave B top(incase of normal Zigzag) 3)Wave C retracing between 100-161% of wave A from wave B top(incase of elongated Zigzag). Conclusive comment's: As of now we are in a correction form of which is unknown,described scenario's will help in identifying correction forms and sub-forms depending upon which action can be taken at appropriate levels. In either case(Flat or Zigzag),one should remember wave C fall is yet to happen and can commence anytime hence all longs should be liquidated in current bounce at appropriate levels and should wait for right opportunity to re-enter. PS:If i have missed anything do let me know.
NSE:NIFTYEducation
by UNDERDOG-29
1
information idea : famous pivots calculation Floor Pivot Calculations Pivot Point (PP) = (H+L+C)/3 First resistance (Rl) = 2*PP –L First Support (Sl) = 2*PP - H Second Resistance (R2) = PP + (Rl-S 1) Second Support (S2) = PP - (Rl-S 1) Third Resistance (R3) = R1 + (H - L) Third Support (S3) = S 1 - (H - L) Where, H=High, L = Low, C = Close Opening Range Pivot Calculations Pivot Point (PP) = (H+L+C)M First Resistance (Rl) = 2*PP -L First Support (Sl) = 2*PP - H Second Resistance (R2) = PP + (Rl-S1) Second Support (S2) = PP - (Rl-S1) Third Resistance (R3) = R1 + (H - L) Third Support (S3) = S 1 - (H - L) FibZone Pivots Pivot Point (PP) = (H+L+C)/3 Daily Range (DR) = (H-L) First Resistance (Rl) = PP + 0.5*DR Second Resistance (R2) = PP + DR First Support (Sl) = PP - 0.5*DR Second Resistance (S2) = PP - DR Resistance Band (RB 1) = PP + 0.61 8*DR Support Band (SB 1) = PP - 0.6 18*DR Resistance Band (RB2) = PP + 1.382*DR Support Band (SB2) = PP - 1.382*DR
NSE:RELIANCEEducation
by Trade-Technique
10
CONFLUENCE TRADING | YOUR KEY TO ACCURATE ENTRIES 🥇 If you are struggling with the identification of accurate trading entries, you definitely should try confluence zones . Note: there are hundreds of variations of confluence elements. In this example, we will discuss trend lines and Fibonacci. ❗️To identify a confluence zone, the price must follow a trend line (it should match higher lows if the market is bullish; it should match lower highs if the market is bearish). Once the trend line is confirmed by at least two touches and consequent reactions , you can look for a confluence zone. 1️⃣Project a trend line and identify the next POTENTIAL touchpoint of the market with a trend line. 2️⃣Take the last impulse in the direction of the trend. Draw a fib retracement based on it (swing low to swing high in case if the market is bullish, swing high to swing low in case if the market is bearish). 3️⃣Take the previous impulse (it must be in the same direction as the initial one). Draw a fib retracement based on it. 4️⃣Look for a match of retracement levels of the last two impulses and a projected trend line. In case if two retracement fib.levels & trend line match, you found a confluence point. 5️⃣ Apply it as a safe entry point. You will get a perfect trend following opportunity. ❤️ Please, support this idea with a like and comment! ❤️ ⬇️ Subscribe to my social networks! ⬇️
Education
by VasilyTrader
2
How to Draw Fibonacci Channels Fibonacci Channels are used to determine fibonacci support and resistance levels within an identified trend. These channels can easily be drawn in both uptrends or downtrends to find potential areas where price action could change. Uptrend When drawing a Fibonacci Channel on an uptrend, a clearly identified trend needs to be established with higher lows being created. To draw the channel, first select the two low points on the trend, and then the high point in-between them. After the channel is drawn, the Fibonacci levels calculated can be used to help speculate price action by watching these areas as support or resistance. Downtrend When drawing a Fibonacci Channel on a downtrend, a clearly identified trend needs to be established with lower highs being created. To draw the channel, first select the two high points determined by the trend, and then the low point in-between them as shown below. Do you use Fib Channels? If so, share your ideas in the comments below!
Education
by TradingView
27