Fibonacci numbers and strategies are widely known and have long been used in the market with effective results. Fibonacci projections and retracements work on a basic set such as the
23%, 38%, 50%, 61.8%, and 80%.
These are widely used in retracements and can be used in projections as well.
Fibonacci fan and arc charts use these numbers in conjunction with angles and slopes and can be quite a useful tool to "objectively" see through various price levels.
Here are 3 Nifty charts with varying origin points and time periods along with their Fibonacci support and resistance points. Lets have a look at them.
CHART 1 - A Medium Term Fibonacci Fan Chart
This is a Fibonacci Fan with the recent low of 4500 as the origin point. It gives various projection lines showing medium term support and resistances based on Fibonnaci retracements of 23.6%, 38.2%, 50%, 61.8%, 78.6% and 100%.
As one can see the immediate support line comes near 5050 levels and the resistance line comes near 5550 level. Markets are currently gyrating between this broad range after the recent high near 5630 levels.
Support : 5050
Resistance : 5550
CHART 2 - A Short Term Fibonacci Fan Chart
This is a shorter term Fibonacci Fan with the recent top near 5630 as its point of origin.
Support : 5100
Resistance : 5330
CHART 3 - A Short Term Fibonacci Arc Chart
This is a Fibonacci Arc chart with the developing support trend line as the point of origin.
Support : 5050
Resistance : 5280, 5370, 5550, 5750
In the short term cluster support comes in at 5050-5100 and cluster resistance comes in at 5330-5370
In the medium term support comes in at 5000 - 5050 and resistance comes in at 5550.
One can keep these points in mind for the short term and the medium term respectively.
A sustained break of these cluster points will be a good indicator of change in trend and momentum.
23%, 38%, 50%, 61.8%, and 80%.
These are widely used in retracements and can be used in projections as well.
Fibonacci fan and arc charts use these numbers in conjunction with angles and slopes and can be quite a useful tool to "objectively" see through various price levels.
Here are 3 Nifty charts with varying origin points and time periods along with their Fibonacci support and resistance points. Lets have a look at them.
CHART 1 - A Medium Term Fibonacci Fan Chart
This is a Fibonacci Fan with the recent low of 4500 as the origin point. It gives various projection lines showing medium term support and resistances based on Fibonnaci retracements of 23.6%, 38.2%, 50%, 61.8%, 78.6% and 100%.
As one can see the immediate support line comes near 5050 levels and the resistance line comes near 5550 level. Markets are currently gyrating between this broad range after the recent high near 5630 levels.
Support : 5050
Resistance : 5550
CHART 2 - A Short Term Fibonacci Fan Chart
This is a shorter term Fibonacci Fan with the recent top near 5630 as its point of origin.
Support : 5100
Resistance : 5330
CHART 3 - A Short Term Fibonacci Arc Chart
This is a Fibonacci Arc chart with the developing support trend line as the point of origin.
Support : 5050
Resistance : 5280, 5370, 5550, 5750
In the short term cluster support comes in at 5050-5100 and cluster resistance comes in at 5330-5370
In the medium term support comes in at 5000 - 5050 and resistance comes in at 5550.
One can keep these points in mind for the short term and the medium term respectively.
A sustained break of these cluster points will be a good indicator of change in trend and momentum.
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