Fibonacci Tool

This tool is used to get the support areas if Price is not pullback more than 100% comapre to price range of
Swing High & Swing Low.

Where to use :

1. Findout probable support (Target) areas where reversal is possible.

2. Identify Swing Low from where Uptrend was started
3. Identify Swing High from where price started in Correction / Consolidation.
4. Connect these two price levels as shown in the below example
5. To get the Targets If short position is taken & To get fresh entry once Bullish Candles are seen in chart.

Example of Uptrend :

In this chart we can see after an upmove , Stock came down… To know the support areas / Target we can use Fibonacci
retracement tool , refer procededure

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 Fibonacci Tool

Example of Downtrend

In this chart we can see after an Downtrend , Stock has give Pullback … To know the reversal areas / Target we can use
Fibonacci retracement tool , refer procededure

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This tool is used to know the reversal areas once price moved beyond 100% of Price range comapre to Swing
High & Swing Low.

Where to use :

1. Findout probable resistance areas (Target) where reversal in Uptrend is possible.

2. Identify Swing High from where downtrend was started
3. Identify Swing Lowe from where price started in Upward direction.
4. Connect these two price levels as shown in the below example
5. To get the reversal if long entry is taken.

Disclaimer: All rights reserved by Stock Market Junkies.

No part of this course content may be reproduced, distributed, or transmitted in any form or by any means, without the
prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain
other noncommercial uses permitted by copyright law.
 Fibonacci Tool
Example of Uptrend :

In this chart we can see after an Downtrend , Stock started it uptrend & Continues the trend greater than 100% of this
Swing High & Swing Low range.

Disclaimer: All rights reserved by Stock Market Junkies.

No part of this course content may be reproduced, distributed, or transmitted in any form or by any means, without the
prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain
other noncommercial uses permitted by copyright law.
 Fibonacci Tool
Reversal ratios: 127.2 %, 161.8% , 2.618

Example of Downtrend :

In this chart we can see after an Downtrend started , Stock started given some pullback in price & Continues the trend
greater than 100% of this Swing High & Swing Low range.

Disclaimer: All rights reserved by Stock Market Junkies.

No part of this course content may be reproduced, distributed, or transmitted in any form or by any means, without the
prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain
other noncommercial uses permitted by copyright law.
 Fibonacci Tool

1. The application of Fibonacci projections differs from other studies as two price waves are required i.e.
the initial wave and a completed wave in the counter direction. The Fibonacci price projection is then
projected from the end of the counter-trend move.
2. They are run from a prior high-to-low swing and projected from another high for possible support. Here
we use 1.00 and 1.618 ratios to run the projections.

Example of Uptrend:

In this chart we can see after an Initial Wave (08 Aug to 14 Aug 19) Counter trend move came in price.

Where to use

1. To know the probable reversal areas – 1.00, 1.618 ratios are used to run the projections.
2. If Price is trading Uncharted Territory.

Disclaimer: All rights reserved by Stock Market Junkies.

No part of this course content may be reproduced, distributed, or transmitted in any form or by any means, without the
prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain
other noncommercial uses permitted by copyright law.
 Fibonacci Tool

Example of Downtrend:

In this chart we can see after an Initial Downtrend Wave (14 Dec 18 to 12 Feb 19) Counter trend move came in price.

Disclaimer: All rights reserved by Stock Market Junkies.

No part of this course content may be reproduced, distributed, or transmitted in any form or by any means, without the
prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain
other noncommercial uses permitted by copyright law.