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Dynamic Chart Analysis - III
2. Supports and Resistances Math:
Fibonacci: First review the ratios of the Fibonacci tool: they are 38.2, 50 and 61.8%, and to a lesser extent 23.6 and 76.4%, which are potential setbacks (making profits) of a rally (of the price curve in one direction up or down).Then it detects a pattern of reversal, this is a broken channel, a change in velocity, with a contained rupture, or the transfer and confirmation of its first medium or resistance. You wondered where the price will rise or fall. Provides solution to this question having Fibonacci ratios plotted and well visible in your chart. These ratios form lines demarcating areas likely technical rebound in the price, and most interesting is that you have a support or resistance that the study comes not linear or horizontal but also a complete mathematical ratio analysis.
Much has been written for and against the Fibonacci ratios, however this tool is widely used today is used by most operators and we do the following thought: if a high percentage of players using Fibonacci for and these are the ones that determine the value of the prices with their market operations, it will then also have this notion professional tool that could come into positions that anticipate a certain ratio and predict the future behavior of the market.
