HOW TO USE FIBONACCI RETRACEMENT

  FIBONACCI RETRACEMENT

You look at this chart carefully, in the last blog I talked about the 3 levels of FIBONACCI, I have brought an example of the same in front of you.

Chart Analysis

This is the chart of CALL OPTION of Strike 127 of Ashok Leyland. It is clearly visible that it was in DOWNTREND from Rs 9 to Rs 3. Then it started giving pullback and gradually CROSSed its three levels 23.6%, 38.2%, 61.8% with VOLUME. If you also look at the chart of Ashok Leyland stock, it consolidated at the level of 106-107 for 3 months and now has given a breakout above 120. The targets that come ready come from 140 to 150 Ashok Leyland.

So with this example, you must have understood how FIBONACCI is used in trading.