-


06.10.2019

AAKASHAYA PATRA SEVEN STAR SMART EDUCATION SERIES PART – 28  

Fibonacci Extension in Down Trend

Below are two internal trend (Swing)

1) Primary Trend ( Main Trend - Long Term Trend)

2) Secondary Trend (Correction Phase) where price is growing / decline against primary trend

Fibonacci Extension in Down Trend mainly use to forecast the future probable
support level of the price, once correction in the Down Trend is over Now how we can identify that correction in the Down Trend is over...Its a very simple...when stock price crossed the "point B" it means when it cross it previous support price where
previously it was supported, if that price break out the last support price that means
correction phase is over and stock might be fall further dawn ward side to match direction with its Primary Trend (Down Trend) and will make new Lower High and Lower Low which will be Lower side as compare to its previous high and low Now how to use Fibonacci Extension tool on stock price chart...once again its a very simple..select the swing High and swing Low ...connect High point (Point A) of the swing High and Low point of the swing Low (Point B) with Fibonacci Extension tool..you will find level as per the Fibonacci Extension levels 23.6%. 38.2%, 50.0%, 61.8% 78.2% and 100.0% The stock price on that levels will be probable future support price for that respective stock, stock may get support at that level and might stop further decline from that points

Here one point is most important
Confirmation of the correction phase is over is only and only when stock price crossed its previous support price and started to trade below from that price...Then and Then you can think about correction phase is over and stock price will make new lower high and lower low as compare to its previous high and low Hope this article on Fibonacci extension in Down Trend will helpful for all of you to find
future support level of the any stock in Down Trend with the help of Fibonacci Extension tool.

FOR MORE SUCH TYPE OF EDUCATION JOINT OUR ONLINE SERIES AND BATCHES AND BE A PRO TRADER CONTACT ON 7028 421 786.

Comments

Post a Comment

Popular posts from this blog

AAKASHAYA PATRA SEVEN STAR SMART EDUCATION SERIES PART – 61 : 10.10.2020

-
Image
                           Financial Ratios- Liquidity Ratio As the name indicates, these financial ratios help us to evaluate the ability of the management to use its assets and manage its liabilities effectively. Commonly used Management Efficiency Ratios include –   1. Fixed Asset Turnover Ratio 2. Working Capital Turnover Ratio 3. Total Asset Turnover Ratio 4. Inventory Turnover Ratio 5. Inventory Number of Days 6. Receivables Turnover Ratio 7. Days of Sales Outstanding   Fixed Asset Turnover Ratio: The fixed-asset turnover ratio is the ratio of net sales to the fixed assets of the company. Fixed Asset Turnover Ratio = Net Sales / Average Net Fixed Assets This ratio is used to measure the operating performance of the company, i.e., how efficiently a company is producing sales with its machines and equipment. In general, a higher fixed-asset turnover ratio indicates that a company has more effectively utilized investment in fixed assets to generate revenue.A de
Read more
-
Image
16.06.2019 AAKASHAYA PATRA SEVEN STAR SMART EDUCATION SERIES PART – 12 : Stochastic Indicator Stochastic is known as one of the reliable leading indicator to forecast the Price Reversal or Swing Reversal, its also give an idea about stock over bought position as well as stock over sold position Stochastic Indicator does not follow price or volume but it follow momentum of the trend For ready reference, Formula of the Stochastic Indicator as below : % K = (Most Recent Closing Price - Lowest Low) / (Highest High - Lowest Low) × 100 %D = 3-day SMA of %K Lowest Low = lowest low of the specified time period Highest High = highest high of the specified time period There is a two line are available in stochastic indicator, %K Line known as fast line and %D is known as slow line %D is known as a slow line because its a SMA of %K Default setting is 14 period it means it consider recent last 14 persod data as per formula in calculation We can use this Stocha
Read more

AAKASHAYA PATRA EXCLUSIVE STOCK FOR INVESTMENT: 21.06.2020

-
Image
DOLLAR INDUSTRIES LTD CMP 137 ENTRY 135 TO 130 STOPLOSS 100 TARGET 300++ TIME: 36 MONTHS Dollar Industries Limited has become one of the leading brands in the hosiery sector with an enviable 15% market share and a significant percentage in textile exports of the total production in the Indian hosiery market. It has also made a noticeable presence across social media and e-commerce platforms. Dollar has extensively penetrated across 29 states in India. Not only that, its products have also gone beyond the boundaries of the country and has emerged as the highest selling Indian innerwear brand in the UAE and the Middle East, marking its presence in places like Oman, Basra, Jordan, Qatar, Kuwait, Bahrain, Yemen, Iraq, Myanmar, Nepal, Nigeria and U.A.E. Having fused its position in Gulf countries the company is now assertively looking at the rest of the world with collections that promise to delineate the string. Dollar Industries is the only hosiery and knitwear company in India c
Read more