BUY FXO Forum Shares
1316
Shares in the BANK:
We BuyWe Sell
$1.8526$1.9099
Page 1 of 4 1234 LastLast
Results 1 to 15 of 58

Thread: about fibo

  1. #1
    In Profit adji_wibowo's Avatar
    Join Date
    Aug 2008
    Posts
    106
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default about fibo

    Fibonacci Instruments

    Leonardo Fibonacci was an important mathematician who was born in Italy around the year 1170. It is rumored that Fibonacci discovered the relationship of what are now referred to as Fibonacci numbers while studying the Great Pyramid of Giza in Egypt.

    Fibonacci numbers are a sequence of numbers in which each successive number is the sum of the two previous numbers: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, etc. These numbers possess an intriguing number of interrelationships, such as the fact that any given number is approximately 1.618 times the preceding number and any given number is approximately 0.618 times the following number.

    These numbers are interrelated with a series of curious correlations. For example, each number in the series is approximately 1.618 times more than the previous one, and each preceding one makes approximately 0.618 of the consequent one.

    There are several widespread instruments of technical analysis based on Fibonacci Numbers. The general interpretation principle of these instruments consists in the fact that, when the price approximates to lines built with their help, the changes in trend development should be expected.

    *

    Fibonacci Arcs
    *

    Fibonacci Fan
    *

    Fibonacci Retracement
    *

    Fibonacci Time Zones
    *

    Fibonacci Expansion
    *

    Fibonacci Channel

  2. #2
    In Profit adji_wibowo's Avatar
    Join Date
    Aug 2008
    Posts
    106
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default fibonacci arcs

    Fibonacci Arcs


    Fibonacci Arcs are used to draw circular arcs that are probable values of support and resistance based on a market range.

    They are displayed by first drawing a trend line between two extreme points, for example, a trough and opposing peak. Three arcs are then drawn, centered on the second extreme point, so they intersect the trend line at the Fibonacci levels of 38.2%, 50.0%, and 61.8%. The interpretation of Fibonacci Arcs involves anticipating support and resistance as prices approach the arcs.

    A common technique is to display Fibonacci Arcs and Fibonacci Fan Lines and to anticipate support/resistance at the points where the Fibonacci studies cross.
    Last edited by adji_wibowo; 08-21-2008 at 11:16 AM.

  3. #3
    In Profit adji_wibowo's Avatar
    Join Date
    Aug 2008
    Posts
    106
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    Fibonacci Retracements


    Fibonacci Retracements are displayed by first drawing a trend line between two extreme points, for example, a trough and opposing peak. A series of nine horizontal lines are drawn intersecting the trend line at the Fibonacci levels of 0.0%, 23.6%, 38.2%, 50%, 61.8%, 100%, 161.8%, 261.8%, and 423.6%. (Some of the lines will probably not be visible because they will be off the scale.)

    After a significant price move (either up or down), prices will often retrace a significant portion (if not all) of the original move. As prices retrace, support and resistance levels often occur at or near the Fibonacci Retracement levels.
    Since the trend in different time frames can be in conflict, it's useful to look at targets from different time frames and different directions. I.e., an expansion level from a shorter time frame can find confluence with a retracement in a longer time frame (or visa versa). In addition, multiple retracements (corrections) from different time frames can also add confluence, for instance, when a 61.8% retracement on a shorter time frame closely matches a 38.2% retracement on a longer time frame. The same is true with expansion targets (impulses) from different time frames. These confluence areas support each other, and give the targets increased credibility. When there are other supporting areas on the charts, i.e., moving averages and congestion areas, then the credibility of the target becomes significant.

    Looking at both techniques, you could say for every A-B-C move, after the initial “A” move: the “B” move is projected using a retracement and the “C” move is projected with an expansion.
    Last edited by adji_wibowo; 08-21-2008 at 11:17 AM.

  4. #4
    In Profit adji_wibowo's Avatar
    Join Date
    Aug 2008
    Posts
    106
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    Fibonacci Time Zones


    Fibonacci Time Zones are a series of vertical lines that are spaced at the Fibonacci intervals of 1, 2, 3, 5, 8, 13, 21, 34, etc. The first line is placed at an extreme point on the chart and the lines that follow are spaced at increasingly wider intervals in accord with the Fibonacci sequence. Interpretation of Fibonacci Time Zones involves looking for significant changes in price at or near the vertical lines.

    To build this instrument, it is necessary to specify two points to determine the length of a unit interval. All other lines are built on base of this unit interval according to Fibonacci Numbers.
    Note that Time Zones are most applicable to a long-term analysis of price action and are probably of limited value when studying short-term charts.Users inexperienced with Fibonacci Studies should consider this type of analysis only when viewing charts that span multiple years.

    Looking at both techniques, you could say for every A-B-C move, after the initial A move: the B move is projected using a retracement and the C move is projected with an expansion.

  5. #5
    In Profit adji_wibowo's Avatar
    Join Date
    Aug 2008
    Posts
    106
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    Fibonacci Expansion


    Fibonacci expansion targets require a wave and a correction of that wave, and assume the following (projected) wave will conclude in the same direction of the first wave. They require 3 points to calculate: A completed wave high and low, and a correction of the wave from which the point is taken for the expansion projection. If the expansion targets are not realized, then the wave count is brought into question.

    The Fibonacci retracement targets require the correct identification of the current trend. Keep in mind that trend is "time frame dependent." The yearly, monthly, weekly, daily, and hourly trends can all be in conflict. Therefore, it is important to identify time frame when identifying the trend, particularly when using the retracement levels.
    Since the trend in different time frames can be in conflict, it's useful to look at targets from different time frames and different directions. I.e., an expansion level from a shorter time frame can find confluence with a retracement in a longer time frame (or visa versa). In addition, multiple retracements (corrections) from different time frames can also add confluence, for instance, when a 61.8% retracement on a shorter time frame closely matches a 38.2% retracement on a longer time frame. The same is true with expansion targets (impulses) from different time frames. These confluence areas support each other, and give the targets increased credibility. When there are other supporting areas on the charts, i.e., moving averages and congestion areas, then the credibility of the target becomes significant.

    Looking at both techniques, you could say for every A-B-C move, after the initial A move: the B move is projected using a retracement and the C move is projected with an expansion.

  6. #6
    In Profit adji_wibowo's Avatar
    Join Date
    Aug 2008
    Posts
    106
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    Fibonacci Channels


    Fibonacci Channels are drawn by consecutive parallel trend lines based on a user selected channel range. The intervals are then calculated using fibonacci values from the selected range, beginning with 0.618-fold size of the channel, then 1.000-fold, 1.618-fold, 2.618-fold, 4.236-fold, etc. As soon as the fifth wave finishes, correction in the direction opposite to the trend can be expected.
    Note that, because the Arcs are drawn so they are circular relative to the chart axis, the points where the Arcs cross the price data will vary depending on the scaling of the chart.

  7. #7
    In Profit adji_wibowo's Avatar
    Join Date
    Aug 2008
    Posts
    106
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default my steps

    Right to the point

    Fibonacci Retracement Levels are:
    0.382, 0.500, 0.618 three the most important levels
    Fibonacci retracement levels are used as support and resistance levels.

    Fibonacci Extension Levels are:
    0.618, 1.000, 1.618 three the most important levels
    Fibonacci extension levels are used as profit taking levels.

    So, what we will learn today is how to apply Fibonacci tool and how to interpret results that we see on the screen.

    To set up Fibonacci on the chart we need to find out:
    1. Is it uptrend or downtrend?
    2. Highest and lowest swings in the chart formation (A, B points).
    And go with the trend!

    So, click on Fibonacci tool from trading platform that you use.

  8. #8
    In Profit adji_wibowo's Avatar
    Join Date
    Aug 2008
    Posts
    106
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default ab high and lows

    We have an uptrend. A our lowest swing, B our highest swing. So, we will look to BUY some lots at the good lowest price and go up with the trend.

    Click on A and drag your cursor to B, click. There you go! You must see different lines appeared on your chart. Those lines are called Fibonacci Retracement and Extension Levels.
    To calculate Fibonacci levels yourself, refer to How to calculate Fibonacci levels.

    So, what we are expecting is next: the price should retrace (go down) from point B to some point C, and then continue up in the direction of the trend.
    Those three dotted lines (0.618, 0.500, 0.382) at the bottom on our picture shows three Fibonacci retracement levels where we expect the price to take a U-turn and go up again. There we will place our BUY order.

    The best situation would be to buy at the lowest level 0.618 point C. And on practice the price usually gives us this chance. However, 0.500 is also a good level to place a BUY order.

    Well, let's take a look at the progress.

  9. #9
    In Profit adji_wibowo's Avatar
    Join Date
    Aug 2008
    Posts
    106
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default my progress

    The price has successfully reached the lowest 0.618 point and made a U-turn.
    So, now when we have our BUY order placed at desired point C, we would like to set some targets to take our profit in the future. For profit taking levels we use Fibonacci extension levels (0.618, 1.000, 1.618). The most common is 0.618 extension level, but when the price shows good potential to reach next 1.000 or even 1.618 level, you can leave your trade to get that target too.
    We will choose 0.618 extension level as our profit target, and according to Figure 2, D is our point for taking profit.

    Important note: in this Fibonacci tutorial 0.618 extension level (as well as 1.000, 1.618 levels) are calculated in relation to the point B, which means that B point represents a 0% extension.
    Some Forex traders like to start counting from point A, then the distance from A to B would be already 100% of the price move. Thus moving further from B would be 1xx.x %.
    For example: looking at the last picture, if to start counting from point A, then point D would be a 1.618 Fibonacci extension level or a 161.8% of the price move.

  10. #10
    In Profit adji_wibowo's Avatar
    Join Date
    Aug 2008
    Posts
    106
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default gann methods

    Gann Instruments

    W. D. Gann (1878-1955) designed several unique techniques for studying price charts. Central to Gann's techniques was the use of geometric angles in conjunction with time and price.

    Gann believed that specific geometric patterns and angles had unique characteristics that could be used to predict price action. All of Gann's techniques require that equal time and price intervals be used on the charts, so that a rise/run of 1 x 1 will always equal a 45 degree angle. Gann believed that the ideal balance between time and price exists when prices rise or fall at a 45 degree angle relative to the time axis. This is also called a 1 x 1 angle (i.e., prices rise one price unit for each time unit).

    *

    Gann Fan
    *

    Gann Line
    *

    Gann Grid

  11. #11
    In Profit adji_wibowo's Avatar
    Join Date
    Aug 2008
    Posts
    106
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    Gann Fan


    Gann watched for important tops and bottoms to form on a daily, weekly, or monthly chart and drew his angles from these changes in trend. When the trend is up and the price stays in the space above an ascending angle without breaking below it, the market is strong; when the trend is down and the price remains below a descending angle without breaking above it, the market is weak. The market shows its relative strength or weakness according to the angle it is above or below.

    Gann Angles are drawn between a significant bottom and top (or vice versa) at various angles. Deemed the most important by Gann, the 1 x 1 trend line signifies a bull market if prices are above the trend line or a bear market if below.

    The ideal balance between time and price exists when prices move identically to time, which occurs when the Gann angle is at 45 degrees. In total, there are nine different Gann angles that are important for identifying trend lines and market actions. When one of these trend lines is broken, the following angle will provide support or resistance with the 1 x 1 being the most important:

    * 1 x 8 - 82.5 degrees
    * 1 x 4 - 75 degrees
    * 1 x 3 - 71.25 degrees
    * 1 x 2 - 63.75 degrees
    * 1 x 1 - 45 degrees
    * 2 x 1 - 26.25 degrees
    * 3 x 1 - 18.75 degrees
    * 4 x 1 - 15 degrees
    * 8 x 1 - 7.5 degrees
    Note that in order for the rise/run values (e.g., 1 x 1, 1 x 8, etc.) to match the actual angles (in degrees), the x- and y-axes must have equally spaced intervals. This means that one unit on the x-axis (i.e., hour, day, week, month, etc.) must be the same distance as one unit on the y-axis. The easiest way to calibrate the chart is make sure that a 1 x 1 angle produces a 45 degree angle. Gann observed that each of the angles can provide support and resistance depending on the trend. For example, during an up-trend the 1 x 1 angle tends to provide major support. A major reversal is signaled when prices fall below the 1 x 1 angled trend line.

    According to Gann, prices should then be expected to fall to the next trend line (i.e., the 2 x 1 angle). In other words, as one angle is penetrated, expect prices to move and consolidate at the next angle. Gann developed several techniques for studying market action

  12. #12
    In Profit adji_wibowo's Avatar
    Join Date
    Aug 2008
    Posts
    106
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    Gann Line


    Gann believed that the ideal balance between time and price exists when prices rise or fall at a 45 degree angle relative to the time axis. This is also called a 1 x 1 angle (i.e., prices rise one price unit for each time unit).

    If prices are above the ascending line, the market holds bull directions. If prices hold below the descending line, the market is characterized as a bear one.

    On intersection of Gann Line usually signals of the basic trend break. If prices go down to this line during an ascending trend, time and price become fully balanced. The further intersection of Gann Line is the evidence of breaking of this balance and possible changing the trend .
    Note that it is necessary to define two points for building a Gann Line.

  13. #13
    In Profit adji_wibowo's Avatar
    Join Date
    Aug 2008
    Posts
    106
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    Gann Grid


    Gann Angles are drawn between a significant bottom and top (or vice versa) at various angles. Deemed the most important by Gann, the 1 x 1 trend line signifies a bull market if prices are above the trend line or a bear market if below.

    According to Gann, prices should then be expected to fall to the next trend line (i.e., the 2 x 1 angle). In other words, as one angle is penetrated, expect prices to move and consolidate at the next angle. Gann developed several techniques for studying market action

  14. #14
    In Profit adji_wibowo's Avatar
    Join Date
    Aug 2008
    Posts
    106
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default other analytical instrument

    Other analytical instruments

    There are line studies being largely used in technical analysis and helping to define channels and trend changes. These instruments are:

    *

    Linear Regression Channel
    *

    Equidistant Channel
    *

    Standard Deviation Channel
    *

    Andrews` Pitchfork
    *

    Dow Theory
    *

    Elliot Waves

  15. #15
    In Profit adji_wibowo's Avatar
    Join Date
    Aug 2008
    Posts
    106
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    Linear Regression Channel


    Linear Regression Channel consists of two parallel lines, equidistant up and down from the line of linear regression trend. The distance between frame of the channel and regression line equals to the value of maximum close price deviation from the regression line. All price changes take place within Regression Channel, where the lower frame works as support line , and the upper one does as resistance line . Prices usually exceed the channel frames for a short time. If they keep outside of the channel frames for a longer time than usually, it forecasts the possibility of trend turn.
    There are two conventional interpretations for the linear regression line:

    The first interpretation is to use the linear regression as the overall trendline for that given period. If the line is positive, it may suggest a buying opportunity, whereas a turn downwards suggests one may consider selling the financial instrument. Price divergences below the line indicate a possible buying opportunity, for the market is oversold, while divergences above the line indicate the market is potentially overbought. Linear regression will work best when the period being studied is similar to the cycle length or typical trend length of the security in question.

    A second interpretation is to construct a Linear Regression Channel, consisting of two parallel lines at fixed distances above and below the Linear Regression Line. These lines can be used as support and resistance lines, which are used to watch the battle between buyers and sellers.

    Support and resistance lines are drawn as the upper and lower limits of a trading range, whereby the support line is the bottom line, and is the point at which "bulls" will not let the price fall below, and the resistance line is the top line, the point above which the "bears" will not let the price rise above.

    Conventionally, a breakout above resistance or below support indicates that there is either a) some news about the company which justifies recreating the upper and lower trading limits or b) there is about to be a correction towards the range as trader's are hesitant about the stock's new value.

    Using the Linear Regression Channel can assist in finding support and resistance levels from the Line

Page 1 of 4 1234 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Disclaimer
2005-2016 © FXOpen All rights reserved. Various trademarks held by their respective owners.

Risk Warning:: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgment as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.

FXOpen Markets Limited, a company duly registered in Nevis under the company No. C 42235. FXOpen is a member of The Financial Commission.

FXOpen AU Pty Ltd., a company authorised and regulated by the Australian Securities & Investments Commission (ASIC). AFSL 412871ABN 61 143 678 719.

FXOpen Ltd. a company registered in England and Wales under company number 07273392 and is authorised and regulated by the Financial Conduct Authority (previously, the Financial Services Authority) under FCA firm reference number 579202.

FXOpen does not provide services for United States residents.

Join us