لفهم الملاحظ Flashcards
What does Fibonacci retracement tool produces?
Fibonacci levels.
Who is Leonardo Fibonacci? What did he discovered? What method he used to get his discovery? What are four examples of his discovery?
Great Italian mathematician. Ratios of a number series that are regarded as describing the Natural proportions of things in the universe including price data. This series of numbers is derived by starting with one and followed by two and then adding one plus two to get three the third number then adding three plus two to get five and five plus eight to get 13. Now if we divide any number in this series by the preceding number the number is always one point six and inverse of this ratio is zero point six one eight. These two ratios are referred to as golden mean or the golden ratio. Face, U.N. secretary building, logo of Toyota and car Aston Martin.
What are Fibonacci levels formulas?
Sequence and as we know this is golden mean point six one eight is the golden mean that is the inverse of golden ratio if we subtract this number from one we will get 0.382 our second Fibonacci level and if we subtract this number from Golden Mean (point six one eight) We will get zero point two three six that is our first Fibonacci retracement level now half of 1 is 0.5 that is also Fibonacci ratio and third Fibonacci retracement level, under root of Golden Mean (point six one eight) is zero point seven eight six that is our fifth Fibonacci retracement level and zero point six one eight is the reciprocal, or multiplication inverse, of one point six one eight is also called golden mean and under root of this number is 1.272 that is a Fibonacci sixth level if we multiply this number two times then we will get 2.618 That is our next Fibonacci extension level and in this way we get all these ratios now in this tool you can see all these ratio this is 0.236 this is 0.382 this is 0.5, .618, .786, 1.272, 1.618.
Why Fibonacci levels are important?
Traders all over the world are watching these levels and placing buy and sell orders at these levels as they act as support and resistance levels.
What method for applying Fibonacci level?
We will Identify trend swings and apply Fibonacci levels at last swing high and low for the current trend. We will apply this tool from low to high in an uptrend. In downtrend We will apply this tool from high to low.
What is method of using Fibonacci levels?
If market retraces, or reverse trend, we will find support or resistance at any of the Fibonacci levels because traders will be placing buy orders at these levels as the market pullbacks. We can place our buy or sell order here with a stop loss in previous level or slightly above or below buy or sell level.
What are two problems of Fibonacci levels with solutions?
Though Fibonacci is a very important tool but there are some problems to deal with it first is there is no way of knowing which level will be the ultimate support level at which the correction takes place. We have to add other indicators to get our entry signals and to confirm our position like moving average, bollinger band and MACD. We cannot identify the current swing because there are so many swings in the current swing as it contains shorter swings. I suggest to choose current swings but on higher timeframe chart.
What is Fibonacci extension tool for Fibonacci extension level? Why are they used?
Fibonacci levels from high to low in an uptrend and low to high in an downtrend. We will simply interchange points of our Fibonacci retracement tool. Fibonacci extension levels are used to know our target levels as we expect that prices will take support or resistance on any of these levels.
What is range for Fibonacci levels and range for Fibonacci extension levels?
From zero and from one.
What is series used to derive Fibonacci ratios? What does it plot and based on what? What do they provide and why? What is one traditional level and other two with their other equals important level? What is one scenario of using Fibonacci with other indicator?
(0,1,1,2,3,5,8,13….). Percentage retracement lines based upon the mathematical relationship within the Fibonacci sequence. Multiple support and resistance levels to target price objectives. 50%, 38.2, 61.8, 33% (1/3rd) and 67% (2/3rds). Selling a bounce in a strong downtrend that rallies up to a Fibonacci Retracement Level at the same time that the market becomes overbought and is also touching its near-term downtrend line.
