Fibonacci Retracement Support and Resistance Levels

Nifty Fibonacci Retracement Level |  Fibonacci Extensions Level |  Fibonacci Pivot Level

What is Fibonacci Retracement

Fibonacci retracement is a move in a security that "retraces" a portion of the previous swing. Usually a stock will retrace at one of 3 common Fibonacci levels - 38.2%, 50%, and 61.8%.
The Fibonacci retracement is created by taking two extreme points, which are usually the highest peak and the lowest trough on the chart. We call them swing (last move) high and the swing low.

Fibonacci retracement levels are a common technical analysis tool used in Stock and Forex trading. They show us by how much a market movement has the potential to retrace or pull back and can help us to determine the potential support and resistance levels. From these, Technical analyst can identify potential buy and sell entry points and also estimate likely reversal points during an up- or down-trend. .

If a stock retraces more than 100% of the prior swing you can calculate a Fibonacci extension to forecast areas of support or resistance levels.

Fibonacci Retracement Levels

The key Fibonacci retracement levels are 23.6%, 38.2 %, 50 %  61.8 %. and 100%. Where the ratio of 61.8%, which is called the "Golden Ratio" is found by dividing a number in the sequence by the number that precedes it. For example: 21 ÷ 13 = 1.6154, 34 ÷ 21 = 1.6190 and 55 ÷ 34 = 1.6176.

Most trading platforms usually automatically calculate the retracement levels.

Learn >> How to use Fibonacci Retracement in Forex Trading

Fibonacci Retracement Support and Resistance Levels

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Nifty Fibonacci Retracement Level |  Fibonacci Extensions Level |  Fibonacci Pivot Level

What is Fibonacci Retracement

Fibonacci retracement is a move in a security that "retraces" a portion of the previous swing. Usually a stock will retrace at one of 3 common Fibonacci levels - 38.2%, 50%, and 61.8%.
The Fibonacci retracement is created by taking two extreme points, which are usually the highest peak and the lowest trough on the chart. We call them swing (last move) high and the swing low.

Fibonacci retracement levels are a common technical analysis tool used in Stock and Forex trading. They show us by how much a market movement has the potential to retrace or pull back and can help us to determine the potential support and resistance levels. From these, Technical analyst can identify potential buy and sell entry points and also estimate likely reversal points during an up- or down-trend. .

If a stock retraces more than 100% of the prior swing you can calculate a Fibonacci extension to forecast areas of support or resistance levels.

Fibonacci Retracement Levels

The key Fibonacci retracement levels are 23.6%, 38.2 %, 50 %  61.8 %. and 100%. Where the ratio of 61.8%, which is called the "Golden Ratio" is found by dividing a number in the sequence by the number that precedes it. For example: 21 ÷ 13 = 1.6154, 34 ÷ 21 = 1.6190 and 55 ÷ 34 = 1.6176.

Most trading platforms usually automatically calculate the retracement levels.

Learn >> How to use Fibonacci Retracement in Forex Trading

Fibonacci Extensions Level for Positional Trading

Nifty Fibonacci Retracement Level |  Fibonacci Extensions Level |  Fibonacci Pivot Level

What is Fibonacci Extension Level

Fibonacci extensions are used by many traders to determine target levels where they wish to take profit. The Fibonacci Extensions tool is similar to the Fibonacci Retracements tool. It is also support and resistance indicator that is used to determine possible support and resistance levels.
Most traders know that a Fibonacci retracement is a move in a security that "retraces" a portion of the previous swing. Usually a stock will retrace at one of 3 common Fibonacci levels - 38.2%, 50%, and 61.8%.
But what happens when a stock retraces more than 100% of the prior swing ? In that situation, you can calculate a Fibonacci extension to forecast areas of support or resistance levels.

Fibonacci extensions provide price targets that go beyond a 100% retracement of a prior move. The levels for fibonacci extensions are calculated by taking the standard fibonacci levels and adding them to 100%. Therefore, the standard fibonacci extension levels are as follows: 127.2%, 138.2%, 150%, 161.8%, 231.8%, 261.8%, 361.8% and 423.6%.

Fibonacci extensions are a good way of finding out what price move is expected after a swing high or swing low is crossed.

Important Fibonacci Extension Levels

The key Fibonacci extension levels are 161.8%, 261.8% and 423.6%. Where the ratio of 161.8%, which is the "Golden Ratio" is found by dividing a number in the sequence by the number that precedes it. For example: 21 ÷ 13 = 1.6154, 34 ÷ 21 = 1.6190 and 55 ÷ 34 = 1.6176.

How is it used ?

Fibonacci extensions are used in a similar way as Fibonacci retracement but used in the opposite direction. The technical analyst identifies the trend, then waits for the market to turn against the trend and then waits for the market to start moving back in the direction of the dominant trend. The analyst then applies the extension ratios to the previous counter trend movement, or wave, starting from the previous low to the high in an uptrend or from high to low in a down word trend. Horizontal lines are then drawn at these levels and are used a possible resistance levels if the dominant trend is an uptrend, or as possible support levels if the dominant trend is a down trend.

Calculating Fibonacci extensions work best when stocks or index are at new highs or new lows - where there aren't any obvious support or resistance levels on the chart. So, if you are bet on a long side in a stock and it begins to make new highs, and you want to take profits, you can calculate the fibonacci extension levels to get a general idea of where it may begin to fall. and same thing you can do on the short side.

Next >>> How to use Fibonacci Retracement in Forex Trading

Fibonacci Extensions Level for Positional Trading

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Nifty Fibonacci Retracement Level |  Fibonacci Extensions Level |  Fibonacci Pivot Level

What is Fibonacci Extension Level

Fibonacci extensions are used by many traders to determine target levels where they wish to take profit. The Fibonacci Extensions tool is similar to the Fibonacci Retracements tool. It is also support and resistance indicator that is used to determine possible support and resistance levels.
Most traders know that a Fibonacci retracement is a move in a security that "retraces" a portion of the previous swing. Usually a stock will retrace at one of 3 common Fibonacci levels - 38.2%, 50%, and 61.8%.
But what happens when a stock retraces more than 100% of the prior swing ? In that situation, you can calculate a Fibonacci extension to forecast areas of support or resistance levels.

Fibonacci extensions provide price targets that go beyond a 100% retracement of a prior move. The levels for fibonacci extensions are calculated by taking the standard fibonacci levels and adding them to 100%. Therefore, the standard fibonacci extension levels are as follows: 127.2%, 138.2%, 150%, 161.8%, 231.8%, 261.8%, 361.8% and 423.6%.

Fibonacci extensions are a good way of finding out what price move is expected after a swing high or swing low is crossed.

Important Fibonacci Extension Levels

The key Fibonacci extension levels are 161.8%, 261.8% and 423.6%. Where the ratio of 161.8%, which is the "Golden Ratio" is found by dividing a number in the sequence by the number that precedes it. For example: 21 ÷ 13 = 1.6154, 34 ÷ 21 = 1.6190 and 55 ÷ 34 = 1.6176.

How is it used ?

Fibonacci extensions are used in a similar way as Fibonacci retracement but used in the opposite direction. The technical analyst identifies the trend, then waits for the market to turn against the trend and then waits for the market to start moving back in the direction of the dominant trend. The analyst then applies the extension ratios to the previous counter trend movement, or wave, starting from the previous low to the high in an uptrend or from high to low in a down word trend. Horizontal lines are then drawn at these levels and are used a possible resistance levels if the dominant trend is an uptrend, or as possible support levels if the dominant trend is a down trend.

Calculating Fibonacci extensions work best when stocks or index are at new highs or new lows - where there aren't any obvious support or resistance levels on the chart. So, if you are bet on a long side in a stock and it begins to make new highs, and you want to take profits, you can calculate the fibonacci extension levels to get a general idea of where it may begin to fall. and same thing you can do on the short side.

Next >>> How to use Fibonacci Retracement in Forex Trading

Nifty Weekly Fibonacci Pivot Point Level

Nifty Fibonacci Retracement Level |  Fibonacci Extensions Level |  Fibonacci Pivot Level

What is Fibonacci Pivot Point Level

Most traders know what Pivot Point Support and Resistance are but many of them don't use or hear about Fibonacci Pivot. If you have never heard or use of them, then get out a pen and some paper to do some paper trade.
Fibonacci Pivot Points start just the same as Standard Pivot Points. From the base Pivot Point, Fibonacci multiples of the high-low differential are added to form resistance levels and subtracted to form support levels.

How to Calculate Fibonacci Pivot Level

The Fibonacci Pivot levels are found by performing various mathematical operations on the numbers of high-low range along with the key Fibonacci ratio.
You can see the below formula to calculate the Fibonacci Pivot Point.

Support 1 (S1) = P - {.382 * (High  -  Low)}

Support 2 (S2) = P - {.618 * (High  -  Low)}

Support 3 (S3) = P - {1 * (High  -  Low)}

Pivot Point (P) = (High + Low + Close)/3

Resistance 1 (R1) = P + {.382 * (High  -  Low)}

Resistance 2 (R2) = P + {.618 * (High  -  Low)}

Resistance 3 (R3) = P + {1 * (High  -  Low)}

How to use Fibonacci Retracement in Forex Trading

Nifty Weekly Fibonacci Pivot Point Level

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Nifty Fibonacci Retracement Level |  Fibonacci Extensions Level |  Fibonacci Pivot Level

What is Fibonacci Pivot Point Level

Most traders know what Pivot Point Support and Resistance are but many of them don't use or hear about Fibonacci Pivot. If you have never heard or use of them, then get out a pen and some paper to do some paper trade.
Fibonacci Pivot Points start just the same as Standard Pivot Points. From the base Pivot Point, Fibonacci multiples of the high-low differential are added to form resistance levels and subtracted to form support levels.

How to Calculate Fibonacci Pivot Level

The Fibonacci Pivot levels are found by performing various mathematical operations on the numbers of high-low range along with the key Fibonacci ratio.
You can see the below formula to calculate the Fibonacci Pivot Point.

Support 1 (S1) = P - {.382 * (High  -  Low)}

Support 2 (S2) = P - {.618 * (High  -  Low)}

Support 3 (S3) = P - {1 * (High  -  Low)}

Pivot Point (P) = (High + Low + Close)/3

Resistance 1 (R1) = P + {.382 * (High  -  Low)}

Resistance 2 (R2) = P + {.618 * (High  -  Low)}

Resistance 3 (R3) = P + {1 * (High  -  Low)}

How to use Fibonacci Retracement in Forex Trading