Method used to find the perfect Resistance and Support levels in the elliot wave pattern is called as fibonacci numbers method. Fibonacci numbers is the basis of elliot wave. but at the time of finding elliot wave even elliot did not know that there is anything like fibonacci series or anything. Any way, it was invented near to 12 th century and is closely related to the Golden Ratio(1.618:1) also.
However below are the fibonacci sequence in which a particular wave of elliot wave pattern occurs.
24%, 38%, 50%, 62%, 76%, 100%, 161%, 261%.....
This is to say that if we have to find out the second wave(correction wave) support of the upward tren if the high of 1st wave is 120 and low is 90 then we can find it as follows..
- Support 1 :(High-Low)*24% = 7.2, then:120-7.2 =112.80
- Support 2 : (120-90)*38% = 11.4, then: 120-11.7 =108.30 and so on......
And in the same way we can also find the resistance by just adding this 7.2 in 120=127..called Resistance 1...
There are also other uses and other mathematics techniques which are used by the most of the technical analyst which we will know in the next topic...Hari Om..........
0 comments:
Post a Comment