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Fibonaccianalysis

What is Fibonacci extension?Hey everyone! 👋 Last time we explained some of the basics to know when it comes to understanding the Fibonacci retracement tool. If you haven’t read that post, be sure to check it out here: In this post, we are going to look at the Fibonacci extension along with a few exhibits that may help you solidify your understanding of this unique trading tool. Please remember this is an educational post to help everyone better understand investing and trading tools. In no way are we trying to promote a particular style of trading! Table of Contents: 1. What are Fibonacci extension levels? 2. What is the significance of extension levels? 3. How to find extension levels? 4. Difference between the Fibonacci retracement and Fibonacci extension Without further ado, let’s jump in! What are Fibonacci extension levels? A 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. Fibonacci extension levels can be calculated to give the trader ideas on profit targets. Significance of Fibonacci extension levels Different traders use this tool differently but the most common usage is as follows: 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. 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. In this case, the extension tool can be used to find the optimal targets after the price moves above the swing high level (100% level). How to find Fibonacci extension levels? In order to find the Fibonacci extension levels, you have to find the recent significant swing high and swing low and then plot the Fibonacci extension accordingly. For uptrend: First, select the swing low and then the swing high. Then go to the Fibonacci settings and select reverse. For downtrend: First, select the swing high and then the swing low. Then go to the Fibonacci settings and select reverse. Exhibit: Fibonacci extension in an uptrend Exhibit: Fibonacci extension in a downtrend Difference Between Fibonacci Retracements and Fibonacci Extensions Fibonacci retracements provide levels for a pullback whereas Fibonacci extensions provide levels in the direction of the existing trend. For instance, a stock goes from 50 to 100 and then falls 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. 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! 💘
NYSE:SNAPEducation
by TradingView
18
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! 💘
NSE:PIDILITINDEducation
by TradingView
21
Varun Beverages: VBL - Long - Swing + IntradayVBL has just given breakout on the upside for an ascending triangle formation successfully giving a daily close above the previous 52week high and all time high. For swing traders, it can be bought on retest of levels around 1005-1020. Ideally the SL should be 990 owing to the psychological figure barrier that it broke. But considering ascending triangle rules, SL can be kept near 965 with a Target which is a confluence of ascending triangle as well as 1.618 ratio i.e 1138. This give a R:R of nearly 2.5. Booking half quantity here and trailing SL to 1000, It can be held for targets of 1195 giving further higher R:R. Intraday traders can buy on 15min candle close above previous day's high with SL 5-10 points below previous days high since it is slightly volatile for targets of 1098. Cheers to Pepsi! Do like, comment and share if you like the analysis!
VLong
by The_Confluence_Trader
Mangalam Cement - Might get a breakoutRecently cement sector is gaining momentum. After the 2020 fall, the stock is linearly increasing with a spurt in July 2021. Since then the stock has again caught itself in a range between 326 and 414 which can also be confirmed from historical data. Seeing current situations we might expect the stock to give massive returns. Seeing the fib levels and EMA 50 and 200 we can expect Target to be 544 and if it is broken, the sky is the limit. Please comment your thoughts and do share your view among others.
NSE:MANGLMCEMLong
by kunalsanghvi2012
Nifty Weekly Analysis - Fibonacci shows possible bearishness Nifty is finding resistance in the 17300-17350 zone and the one day it opened above 17400 it could not sustain and fell rapidly back to below 17300 levels. The reason for this could be it is 61.8% retracement level of LH formed on 17351 (18 Jan) and LL of 15671 (8 Mar). Obviously this doesn't mean that NIfty could go down substantially from here. It could possibly make an U-turn and go upwards as well. My view would be that Nifty could be forming a possible consolidation here before it resumes its further upmove but we have to prepare for every possibility. In my opinion, any close above 17350 would signal a bullish move. Also any close below ~17000 (also where 200 DMA is present) would signal a very big downturn. Watch out for these levels.
NSE:NIFTY
by DashSam
Trade using Pitchfork and PitchFanPitchFORK + PitchFAn is very acuurate When it comes to find the point of reversal. In this chart one can easily find the point of reversal just by looking at important levels of pitchfork. If pitch fork is drawn accurately it will definitely help you in your intraday/positional trading. Draw pitchfor at daily time frame and then use it in your trading either on hourly/30min/15min/5min it will give you amazing results. good luck guys....
NSE:NIFTYEducation
by Abhi_The_Chart_Reader
ABFRL SWING LONG1. A major trend line breakout happend 6 weeks back, after that continuously in a strong uptrend. 2. On 2nd November it breaks its all time high of 281.35 and closed at 288.10 with a strong bullish candle of 6.23%. 3. Today stock pickups the momentum after the successful retest over the level of 281.25 Details : Buy range : 296-306 Stoploss : 275 Target : 396 ( fibonacci 1.618 level ), 30% . Short term targets are 331 ( 8.5% ) and 358 (17%). For mid to long term a good entry will be after a pullback , when it took a support over 20 EMA. Disclaimer : This analysis/strategy is only for educational purpose and not be considered as any trading idea/tip. Please consult your financial advisor before you take any trade and we are no way responsible for your profits/losses. Thank you!
NSE:ABFRLLong
by hjharsh
BITCOIN 80k soon : FIB Extension & Flag-Pole theory (READ CAP) Bitcoin projected targets are 80k as per both of my theories:- 1st THEORY- FLAG & POLE - Widely used Flag Pole is basically plotted to guess further targets when an asset is at ATH . Bitcoin went into consolidation and formed a slant flag after a huge rally, here the rally is considered as a pole. So we just draw a trendline from the bottom to the top of the rally till the current consolidation phase and paste the same pole ahead of the flag. Our projected target is 80k here. This is a very simple theory. Second one is Fibonacci Extension . We plotted this from 28k to 53 where it retraced and we usually consider 0.618 as our targets which is again 80k Now that's huge and looks quite accurate. COMMENT your views HODL !
Long
by meetmoneypenny