•Fibo retracement levels help us to identify potential reversal area or identifying potential entry point after a pullback.
•It represents various levels of significance within a swing high and low.
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•Fibo retracement levels help us to identify potential reversal area or identifying potential entry point after a pullback.
•It represents various levels of significance within a swing high and low.
•Spot the recent swing high & swing low (usually a peak & a low) on a chart.
•Plot the Fibo on these points.
•You'll get 5 key levels of support & resistance (S/R) in between the peak & low.
•Key Fibonacci ratios: 23.6%, 38.2%, 50%, 61.8%, & 100%.
• The retracement level forecast can determine the level at which retracement is likely to occur.
• These retracement levels offer traders a favourable entry to open new trades in the direction of the trend.
•Fibonacci analysis can be applied when there is a noticeable up-move or down-move in prices.
•Applying it in range bound markets would turn out to be a futile exercise.
•Though it can be used on any time frame, for better results apply it on a higher TF, anything beyond 30mins.
•Higher the TF you choose, higher would be the holding period for the trade.
•Best TF to choose: Know your type & trading style.
• I look at larger TF's only for positional trading/ investing.
• While choosing a stock to get an entry, then I will focus only on strong fundamental companies.
• Can be used to make investment decisions in sectoral MFs or Index BeES.
•Lets say, you always wanted to purchase few qty of #DMART, but were unable to do so due to a rapid run-up in the stock.
•So wait for the stock to retrace for a favourable entry.
•P.S.: Like any indicator, use this as a confirmation tool.
• First use the Fibo tool and plot it on the swing low and pull it up till the swing high, thereafter the FIBO ratios will get plotted automatically.
• Use the Fibo tool and plot it on the swing high and pull it up till the swing low, thereafter the FIBO ratios will get plotted automatically.
• 23.6% retracement is rather shallow & is appropriate for flag breakouts or brief pullbacks.
• 61.8% retracement level, aka the golden ratio is relatively deeper, but crucial.
• Retracements between 38.2% to 50%, is regarded as moderate.
• Few months ago, one of the super trader @bhatiamanu Sir, had tweeted that he would look to start investing near 13k levels on Nifty.
• This number was arrived from Fibo retracement (refer chart 2)
• Unlike Nifty, which didn't even retrace by 38.2%,there are sectors which have retraced > 38.2%
•In other words the correction was relatively deeper than Nifty.
• Those sectors are essentially underperformers:
i) NIFTYIT
ii) NIFTYPHARMA
• A trader can consider taking entry basis Fibonacci retracement only when other conditions are also fulfilled:
i)Formation of a reversal pattern
ii)The pattern formation & the retracement level should form near the long term S/R.
iii)Always have a Stop loss.
• This is just the tip of the iceberg when it comes to Fibo retracement.
• I encourage you to do some back testing of your own on different TF's and check the results before taking entries.
• Also remember nothing works in isolation.
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A THREAD ON @SarangSood
Decoded his way of analysis/logics for everyone to easily understand.
Have covered:
1. Analysis of volatility, how to foresee/signs.
2. Workbook
3. When to sell options
4. Diff category of days
5. How movement of option prices tell us what will happen
1. Keeps following volatility super closely.
Makes 7-8 different strategies to give him a sense of what's going on.
Whichever gives highest profit he trades in.
2. Theta falls when market moves.
Falls where market is headed towards not on our original position.
3. If you're an options seller then sell only when volatility is dropping, there is a high probability of you making the right trade and getting profit as a result
He believes in a market operator, if market mover sells volatility Sarang Sir joins him.
4. Theta decay vs Fall in vega
Sell when Vega is falling rather than for theta decay. You won't be trapped and higher probability of making profit.
Decoded his way of analysis/logics for everyone to easily understand.
Have covered:
1. Analysis of volatility, how to foresee/signs.
2. Workbook
3. When to sell options
4. Diff category of days
5. How movement of option prices tell us what will happen
1. Keeps following volatility super closely.
Makes 7-8 different strategies to give him a sense of what's going on.
Whichever gives highest profit he trades in.
I am quite different from your style. I follow the market's volatility very closely. I have mock positions in 7-8 different strategies which allows me to stay connected. Whichever gives best profit is usually the one i trade in.
— Sarang Sood (@SarangSood) August 13, 2019
2. Theta falls when market moves.
Falls where market is headed towards not on our original position.
Anilji most of the time these days Theta only falls when market moves. So the Theta actually falls where market has moved to, not where our position was in the first place. By shifting we can come close to capturing the Theta fall but not always.
— Sarang Sood (@SarangSood) June 24, 2019
3. If you're an options seller then sell only when volatility is dropping, there is a high probability of you making the right trade and getting profit as a result
He believes in a market operator, if market mover sells volatility Sarang Sir joins him.
This week has been great so far. The main aim is to be in the right side of the volatility, rest the market will reward.
— Sarang Sood (@SarangSood) July 3, 2019
4. Theta decay vs Fall in vega
Sell when Vega is falling rather than for theta decay. You won't be trapped and higher probability of making profit.
There is a difference between theta decay & fall in vega. Decay is certain but there is no guaranteed profit as delta moves can increase cost. Fall in vega on the other hand is backed by a powerful force that sells options and gives handsome returns. Our job is to identify them.
— Sarang Sood (@SarangSood) February 12, 2020
Recently, the @CNIL issued a decision regarding the GDPR compliance of an unknown French adtech company named "Vectaury". It may seem like small fry, but the decision has potential wide-ranging impacts for Google, the IAB framework, and today's adtech. It's thread time! 👇
It's all in French, but if you're up for it you can read:
• Their blog post (lacks the most interesting details): https://t.co/PHkDcOT1hy
• Their high-level legal decision: https://t.co/hwpiEvjodt
• The full notification: https://t.co/QQB7rfynha
I've read it so you needn't!
Vectaury was collecting geolocation data in order to create profiles (eg. people who often go to this or that type of shop) so as to power ad targeting. They operate through embedded SDKs and ad bidding, making them invisible to users.
The @CNIL notes that profiling based off of geolocation presents particular risks since it reveals people's movements and habits. As risky, the processing requires consent — this will be the heart of their assessment.
Interesting point: they justify the decision in part because of how many people COULD be targeted in this way (rather than how many have — though they note that too). Because it's on a phone, and many have phones, it is considered large-scale processing no matter what.
It's all in French, but if you're up for it you can read:
• Their blog post (lacks the most interesting details): https://t.co/PHkDcOT1hy
• Their high-level legal decision: https://t.co/hwpiEvjodt
• The full notification: https://t.co/QQB7rfynha
I've read it so you needn't!
Vectaury was collecting geolocation data in order to create profiles (eg. people who often go to this or that type of shop) so as to power ad targeting. They operate through embedded SDKs and ad bidding, making them invisible to users.
The @CNIL notes that profiling based off of geolocation presents particular risks since it reveals people's movements and habits. As risky, the processing requires consent — this will be the heart of their assessment.
Interesting point: they justify the decision in part because of how many people COULD be targeted in this way (rather than how many have — though they note that too). Because it's on a phone, and many have phones, it is considered large-scale processing no matter what.
