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Fibonacci Retracement

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
Banknifty strongest Wave 3 of Fall to startBanknifty recovered up after fall from 34820. Currently wave 2 of zig zag in progress. Risky option would to go short near 34700 with SL 34820 or can wait for confirmation break of 34530 for downside fall minimum target 34000. Wave 3 will go beyond 1.618 fibonacci extensions level. Channel break needed for sharp fall so watch as plotted on chart. DISCLAIMER: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. Not recommended to take FnO positions based on this analysis I may or may not trade this analysis. Details in description.
NSE:BANKNIFTYShort
by Niftydirection
ASHOK LEYLAND: Upward TrendNSE:ASHOKLEY shows strong buy indicated by PSAR, MACD & Fisher crossover followed by EMA & MA Crossover Target 2: 149.15 Target 1: 134.20 Stop Loss: 118.65 𝑫𝒊𝒔𝒄𝒍𝒂𝒊𝒎𝒆𝒓: The analysis is only for illustration purposes only. Please consult your financial advisor, agent, broker before acting on any information. We may or may not have positions in the stock and our actions may be contrary to the one mentioned here. This analysis may or may not be updated. We would not be responsible for the profit/loss resulting from this analysis.
NSE:ASHOKLEYLong
by finogent
McDowell Long opportunityNSE:MCDOWELL_N Stock -> United Spirits (McDowell) TimeFrame -> Weekly Hello all! United Spirits broke out of the symmetrical triangle pattern on 27 September 2021. The stock since then has been consolidating ever since thus forming a flag and pole pattern and has now finally come to retest the triangle it broke out of. It makes for a good opportunity to go long. The perfect entry would be after the breakout of the flag pattern. The stock is also nearing its "Golden zone" (between 50%-61.8% Fibonacci retracement) . Thus accumulation in small quantities can also be done at this point. The analysis would become invalid if the flag pattern is broken on the downside. *NOT A CALL* #mcdowell #unitedspirits #nifty #fibonacciretracement #technicalanalysis #swingtrading
NSE:UNITDSPRLong
by Traders_Town
TATA ELXSI: POSITIVE TRENDNSE:TATAELXSI shows strong buy indicated by PSAR, MACD & Fisher crossover followed by EMA & MA Crossover Target 2: 8345.00 Target 1: 8200.80 Stop Loss: 8052.0 𝑫𝒊𝒔𝒄𝒍𝒂𝒊𝒎𝒆𝒓: The analysis is only for illustration purposes only. Please consult your financial advisor, agent, broker before acting on any information. We may or may not have positions in the stock and our actions may be contrary to the one mentioned here. This analysis may or may not be updated. We would not be responsible for the profit/loss resulting from this analysis.
NSE:TATAELXSILong
by finogent
GUJARAT AMBUJA EXPORTS: Long term positive outlook NSE:GAEL shows strong buy indicated by PSAR, MACD & Fisher crossover followed by EMA & MA Crossover Target 2: 470.20 Target 1: 383.50 Stop Loss: 286.85 𝑫𝒊𝒄𝒍𝒂𝒊𝒎𝒆𝒓: The analysis is only for illustration purposes only. Please consult your financial advisor, agent, broker before acting on any information. We may or may not have positions in the stock and our actions may be contrary to the one mentioned here. This analysis may or may not be updated. We would not be responsible for the profit/loss resulting from this analysis.
NSE:GAELLong
by finogent
Hindustan Unilever long opportunityNSE:HINDUNILVR Stock -> Hindustan Unilever TimeFrame -> Weekly Hello all! Hindustan Unilever has corrected about 40% from its highs in September 2021. The stock has been in a downtrend since then and has been taking stiff resistance from trendline 1. It approached its strong support band of 1850-2000 and took a strong bounce from there with good volumes and also broke trendline 1. The retest of the trendline has been done and its followed by a bullish candle. This thus makes for a good opportunity to go long. Apart from the price action, the stock also seems to be taking support from its 200 weekly EMA. Also the bounce has come from the 50% fib level which further strengthens the conviction on going long.
NSE:HINDUNILVRLong
by Traders_Town
1
NHPC LTD: GROWTH TREND NSE:NHPC shows strong buy indicated by PSAR, MACD & Fisher crossover followed by EMA & MA Crossover Target 2: 37.60 Target 1: 34.85 Stop Loss: 29.05 𝑫𝒊𝒔𝒄𝒍𝒂𝒊𝒎𝒆𝒓: The analysis is only for illustration purposes only. Please consult your financial advisor, agent, broker before acting on any information. We may or may not have positions in the stock and our actions may be contrary to the one mentioned here. This analysis may or may not be updated. We would not be responsible for the profit/loss resulting from this analysis.
NSE:NHPCLong
by finogent
Breakout From ConsolidationAfter a hugh upmove stock has been in consolidation. Now stock has give a good breakout with almost highest volume since Sep 2021. It has been consolidating and strongly taking support at 038 fibo level. For last three weeks it have been approaching the resistance line and now gave breakout. There is high probability that it may make a new fresh 52 week high in upcoming weeks. This post is for information purpose only. Do not consider it as call.
NSE:ADANIPORTSLong
by AkshayAdak
MISTANN FOODS LIMITED: UPWARD TREND STARTINGBSE:MISHTANN shows strong buy indicated by PSAR, MACD & Fisher crossover. Target 1: 32.85 Target 2: 39.35 Stop Loss: 26.55 𝑫𝒊𝒔𝒄𝒍𝒂𝒊𝒎𝒆𝒓: The analysis is only for illustration purposes only. Please consult your financial advisor, agent, broker before acting on any information. We may or may not have positions in the stock and our actions may be contrary to the one mentioned here. This analysis may or may not be updated. We would not be responsible for the profit/loss resulting from this analysis.
BSE:MISHTANNLong
by finogent
Banknifty to crack hard in Z waveBanknifty Elliott wave count as shown in charts from wave 1 to 5. Currently we are in complex wxyxz correction. The final Z wave should be in progress which should break previous low. The new low is expected to be between 31400 to 30000 The drop from X wave can be looked as Zig zag correction on downside with current wave B in progress and will start C wave once breaks 35511 low as shown in below image Charts will be invalid if breaks 38766 DISCLAIMER: There is no guarantee of profits or no exceptions from losses. The stock and its levels discussed are solely the personal views of my research. You are advised to rely on your judgement while investing/Trading decisions. Seek help of your financial advisor before investing/trading. Investment Warnings: We would like to draw your attention to the following important investment warnings. -Investment is subject to market risks. -The value of shares and investments and the income derived from them can go down as well as up. -Investors may not get back the amount they invested - losing one's shirt is a real risk. -Past performance is not a guide to future performance. -I may or may not trade this analysis --------------------------(((((LIKE)))))-------------------------------
NSE:BANKNIFTYShort
by Niftydirection
GHCL: LONG TERM HOLDNSE:GHCL shows strong buy indicated by PSAR, MACD & Fisher crossover. Target 1: 748.85 Stop Loss: 625.30 𝑫𝒊𝒔𝒄𝒍𝒂𝒊𝒎𝒆𝒓: The analysis is only for illustration purposes only. Please consult your financial advisor, agent, broker before acting on any information. We may or may not have positions in the stock and our actions may be contrary to the one mentioned here. This analysis may or may not be updated. We would not be responsible for the profit/loss resulting from this analysis.
NSE:GHCLLong
by finogent
Is Netflix headed towards 120?This analysis is on Netlifx ($NFLX) which made a ATH of around 700 and now is present trading at 190 levels. Everything happened so fast, in a matter of just under a month of trading, that many investors lost big money. So what was the crucial level? And where were the supports? Why didnt the support work? Did Earnings alone spoil everything? Markets discount everything and charts have a way of telling the same because they represent unbaised price action. According to my analysis, 540 was a crucial level. A day closing below this triggered a major sell off. The next support was at 340 levels according to Fibonnaci retracement at 61.8%. But it didnt hold. So the next level is around 120!
NASDAQ:NFLX
by sri21
Good trade - ZEEL - 27-04-22.Hello Guys, Sharing my todays trade just for a learning purpose for you all and myself too. I missed the entry coz of my office work. But I got another entry point at retracement. ANALYSIS & TRADE : * Overall Downtrend so this stock is in my SHORTing list. * And triangle pattern gives breakdown all went Acc. to my plan - BUT I MISSED THE ENTRY. * Because of position sizing and RR wait for a good retracement and thanks to ZEEL its follow price action. * I entered and this time set an alarm above the target price. * I was busy with my office work and a HAPPY ALERT BEEP. * Just starts trailing STOP LOSS and not much but some extra points benefit I took by trailing. LEARNING : - Never take entry in a FOMO. - Its perfectly fine if we miss a trade, NEVER LOOSE MONEY. - Stick to your trading plans - Never change them. Thank you so much, Same look a like trade i took in ABCAPITAL. there also i missed the entry ( Because of a MARUBOZU Candle) - I Never enter in MARUBOZU or parabolic moves. I wait and track the stock and I GOT A DIVERGENCE at next RESISTANCE. Comment if you want ABCAPITAL trade setup also. THANKYOU.
NSE:ZEELShort
by DivyaBihariDas