A new online Fibonacci Calculator by DeltaT1 is now being tested on the DeltaT1 web site:
Questions and comments about it here.
DA
day trading
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Originally posted by vipin_malhotra
unable to locate HELP on BROWSER WINDOW
What help are you looking for?
LU
luvhotchic
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What figures are most important in calculating Fibonacci. What does the ratio represents and how it cam be appkied to price action. Please provide me with an honest answer.
BM
bmani890
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I want to know about the fibonacci calc..... High & low its the previous day high low right and then its shown some ratios and price ... right now how to decide to guess the market
mani
mani
DA
day trading
Rep: 39,586
Posts: 6,369
Originally posted by bmani890
I want to know about the fibonacci calc..... High & low its the previous day high low right and then its shown some ratios and price ... right now how to decide to guess the market
mani
Yes, the high and low is the previous day (or session or hour depending on the time frame that you're trading) and from that the calculator will calculate the most common ratios if you leave the default values in place.
The theory is that at the Fibonacci levels there is an increased probability of a reversal and if it breaks that level then a run for the next level. It's best used with a cluster of indicators. For example, if a common moving average and a popular pivot point and a popular Fibonacci number all cluster/converge on the same price point then the probability is that price point is more significant by dint of the fact that more traders expect it to be because there are more watching that price and using it as profit targets or reversal entries etc.