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what exactly are fibonacci arcs , timezone retracements etc ?
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how to use,interprete them on PI ?
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can we develop a trading strategy solely on fibonacci principals ?
the fibonacci arc are three curved lines that are drawn for the purpose of anticipating key support and resistance levels, and areas of ranging.
By drawing three curves that intersect this trendline at the key Fibonacci levels of 38.2%, 50% and 61.8%. Transaction decisions are made when the price of the asset crosses through these key levels.
for more information about fibonacci check the below link http://zerodha.com/varsity/chapter/fibonacci-retracements/
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Fibonacci Levels is one of the most popular tools in the worlds of Technical Analysis. These levels are predictive in nature and helps to identify pullbacks or breakouts. People have been using it successfully since years especially in Forex market. Using Fibonacci retracements in your trading will not guarantee you overnight success. But if used in conjunction with other technical analysis indicators like RSI, MACD, moving averages, candlestick patterns, etc it can be very valuable.
Check out the below link to download an Excel sheet to calculate Fibonacci Levels for stocks:
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