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FIBONACCI FOR INTRADAY

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Fibonacci numbers applied to intraday trading

Fibonacci numbers can reveal very useful in identifying targets of a movement tracing, even in key intraday.
Retracement levels are:

23.6%
38.2%
50%
61.8% (more reliable)
76.4%

Observe the following chart on intraday Dax futures, in particular the movement indicated by 1-2-3:

Retracement levels

After a wave of strong sales supported by high volumes pushing the Dax future by 6412.5 (1) to 6298.5 (2), the market reacts in area 6298.5 with a series of white candles well supported by the volumes and break the upward maximum of previous black candle... but w hat is the objective of retracement?

And here running in our rescue the mythical Fibonacci!

The Fibonacci numbers can be very helpful to identify the targets of retracement, if the targets coincide with the Fibonacci levels of support or resistance identified by technical even better!
In that we proposed, after a bearish movement from 6412.5 to 6298.5, objectives of the Fibonacci ritracciamenti are:

  • First Fibonacci target = 23.6%: 6326
  • Second Fibonacci target = 38.2%: 6342
  • Third Fibonacci target = 50%: 6356
  • Fourth Fibonacci target = 61.8%: 6369
  • Fifth Fibonacci target = 76.4%: 6386

In intraday the Dax future movements after wide-ranging and retraces very often, 61.8%. That in other words, traders who work with the help of the Fibonacci numbers, consider very likely that, as a result of movements of n points (114 in our example) there is a movement in the opposite direction (known as retracement) amounting to 61.8% of the main movement.

The retracement is calculated using the following formula:

Calculation of the Fibonacci retracement

 

Forex Chart