Sunday, August 2, 2009

FIBONACCI RATIOS :::MY WAY TO USE THEM FOR TARGETS

I have been demonstrating lots of charts , in powerfull moves on both sides, showing the way ,how i use fibonacci ratios, to arrive at targets.
if readers are still confused, here i am trying to explain one important method.
When , i find a sudden fast move in the opposite direction of the current trend,,(doesnt matter, if the move is in 1 min chart or on hourly charts)..i simply take retracement ratios (1.27,1.618 and 2.618)..for THE LATEST move in the current trend.
IF the current trend is down, and i see a fast upmove on the upside, i take last leg of the down move and take reverse fibonacci ratios. 1.27..1.618 and 2.618 levels are my 1,2,3 targets and
also resistance levels.
here is an example of 1 min nifty chart.
now if by using some additional ta tools, we find that the recent up move has
more steam in it,than we have to take, one higher leg of the prev. fall to get higher targets,in this following chart, a reader can see ,how wonderfull these levels works.


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