(2/n)
Thread on fibs:
Part 1 - Fib extensions:
The way I use fibs and extensions differ from conventional textbook methods.
Fib extensions are ratios beyond 1 used to project targets for profit booking.
(1/n)
(2/n)
Fibonacci is a price based and a relative time based tool.
Meaning, the proper way to use this tool largely depends on the swing markers you use relative to the TF of your analysis and trading.
(3/n)
Example 1 for broader price range swing:
(4/n)
Not every ATH or high can be termed as swing high.
For a high to be validated as swing high and used in fibs, price SHOULD start its retracement from the level.
Else, it is a high which cannot be used for fibonacci trading.
(6/n)
Imp points to be noted:
1. Fib extensions are probable zones which need to be confirmed by price before you begin booking out.
(7/n)
(8/n)
Upcoming threads:
1. How I use fib retracements to guage the strength of a breakout of a swing high/ATH?
2. How to use extensions beyond 1.618?
3. How to use fib extensions to trade Nifty intraday at all time highs?
(9/n)
As promised, started to share my unique style of using fibs @anand_luhar
#StockMarket #trading #nifty50
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1. 7 FREE OPTION TRADING COURSES FOR
A THREAD:
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7 FREE OPTION TRADING COURSES FOR BEGINNERS.
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