Stock Analysis Begins Here
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| Posted by Sandesh Posted on: 13-Feb-2015 | The lines help project points of resistance and support and they can also be used to suggest when a breakout is likely to occur. The two key ratios are 38% and 62% and often when a security is trading it can rebound back and forth between these two ratios. If this is happening a lot and the market looks congested between these two points then the retracements are suggesting that a price breakout is imminent. When a price breakout occurs the price of a security will often move dramatically outside of the 38% and 62% ratios and the market will change significantly. The presence of price congestion in between these two lines created by the Fibonacci retracement suggests the market price will move and this is the point at which a trader should act. |
| Posted by Admin Posted on: 12-Feb-2015 | Hi Manoj,
Fibonacci Level particularly 38%, 62% retrace after a clear trend have lot of significance in terms of support and resistance. We will try to write about them soon. In the mean time suggest you to observe long term Fib Levels for blue chip stocks. Thanks Site Admin |
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