Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

Aban OffShore and Fibonnaci Arc Charting Technicque

45 sec read


[wp_ad_camp_5]

 

Fibonacci arcs are a charting technique based on Fibonacci numbers, used to predict the future support and resistance levels for a financial instrument. A typical Fibonacci arc consists of three curved lines; but traders can increase the number of lines with respect to Fibonacci numbers. Fibonacci arcs can be created for both short-term and long-term trends, and as well as for both bullish and bearish trends.


The procedure for creating Fibonacci arcs is simple and most advanced trading systems allow traders to draw them. First a trend line is plotted for connecting to extreme points – usually connecting the highest high and lowest low of a given period. Then Fibonacci arcs are plotted as three curves which intersect the trend line at key Fibonacci ratios 38.2%, 50% and 61.8%. Traders can extend the number of curves if necessary by plotting them at 100%, 132.8%, etc.

Usually when a trend cross a Fibonacci ratio curve (say 38.2%), the curve becomes support for uptrend and resistance for downtrend and the next Fibonacci ratio (50%) becomes resistance for uptrend and support for downtrend. 

Applying Fibonnaci Arc charting technique to Aban Offshore, a  strong  move above Rs 440(23.6%) will target Rs 580-600 levels(31.8%) in short term as indicated by arrows as shown in the charts
Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

What is Retail Digital Rupee?

The retail digital rupee will be introduced on December 1 as part of a pilot programme, the Reserve Bank of India (RBI) stated in...
Rajandran R
1 min read

TradersKart – One Stop Shop for Traders

TradersKart offers One-Stop E-commerce Solution for all the traders, where traders will get access to their trading needs. Traderskart provides the necessary tools required...
Rajandran R
56 sec read

[Free Course] Mini Certification on Options Trading in Indian…

It is a long-pending request from the Marketcalls Readers This Mini-Course on Options Trading in Indian Markets gets you the basic building blocks about...
Rajandran R
1 min read

0 Replies to “Aban OffShore and Fibonnaci Arc Charting Technicque”

  1. dear raj, ur call shivvani did fire but after i got out of it.cud u plz explain,d movements so that i may b able to understand them .regarding ur pick omaxe wht r its short term targets. rashmi

  2. Hi how to get nifty eod technicals auto update and nifty pivot levels eod auto update for blogsthank u

Leave a Reply

Get Notifications, Alerts on Market Updates, Trading Tools, Automation & More