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    Notes Technical Analysis - 24

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    Sona Gavde
    The document discusses three topics: 1. A strategy for Bollinger Bands where the 20 Dema line acts as support above and the upper and lower Bollinger Bands act as resistance and support at 95%. Thin Bollinger Bands indicate a sideways trend. 2. Trading stop loss is previous candle low or close, useful for intraday trading. 3. Fibonacci retracement is based on the Fibonacci number sequence found in nature. Key ratios are 61.8%, 38.1%, and 23.6% when dividing subsequent numbers in the sequence.

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    Notes Technical Analysis - 24

    Uploaded by

    Sona Gavde
    13 views1 page
    The document discusses three topics: 1. A strategy for Bollinger Bands where the 20 Dema line acts as support above and the upper and lower Bollinger Bands act as resistance and support at 95%. Thin Bollinger Bands indicate a sideways trend. 2. Trading stop loss is previous candle low or close, useful for intraday trading. 3. Fibonacci retracement is based on the Fibonacci number sequence found in nature. Key ratios are 61.8%, 38.1%, and 23.6% when dividing subsequent numbers in the sequence.

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    Notes Technical Analysis -24

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    The document discusses three topics: 1. A strategy for Bollinger Bands where the 20 Dema line acts as support above and the upper and lower Bollinger Bands act as resistance and support at 95%. Thin Bollinger Bands indicate a sideways trend. 2. Trading stop loss is previous candle low or close, useful for intraday trading. 3. Fibonacci retracement is based on the Fibonacci number sequence found in nature. Key ratios are 61.8%, 38.1%, and 23.6% when dividing subsequent numbers in the sequence.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    13 views1 page

    Notes Technical Analysis - 24

    Uploaded by

    Sona Gavde
    The document discusses three topics: 1. A strategy for Bollinger Bands where the 20 Dema line acts as support above and the upper and lower Bollinger Bands act as resistance and support at 95%. Thin Bollinger Bands indicate a sideways trend. 2. Trading stop loss is previous candle low or close, useful for intraday trading. 3. Fibonacci retracement is based on the Fibonacci number sequence found in nature. Key ratios are 61.8%, 38.1%, and 23.6% when dividing subsequent numbers in the sequence.

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    of 1

    • Strategy for Bollinger Band :-

    20 Dema line act as a support if current price above 20 Dema.


    Upper Bollinger Band which stand at +26 (2 deviation) will act like resistance in 95% cases.
    Lower BB which stands at -26 will act as support in 95% cases.
    If BB is thin then sideways trend is going on:-
    BB square:- if BB is thin, for longer duration and current candle breaks the upper BB then it is a
    buy call.

    Square should be for minimum one month.

    • Trading Stop Loss: - Previous candle low or close. This strategy is useful for
    intraday trading.

    Fibonacci Retracement
    This Theory based upon the Fibonacci no sequence. This no is evident in Architecture, Art and even
    in nature. People believe that if the Fibonacci No sequence is followed in so many aspects, it can be
    followed even in stock market.
    These Nos are derived as follows:-
    Step 1- Take binary no 0 &1
    Step 2- Keep on adding current No + Previous No
    Step 3- Thus the No sequence will be
    0,1,2,3,5,8,13,21,34,55,89,144,233 ...........
    = 0+1=1
    1+1=2
    1+2=3
    2+3=5
    And so, on

    Golden ratio: - A creation of Fibonacci No sequence is computed as


    0,1 1,2,3,5,8,13,21,34,55,89
    = 0.618 = 61.8%
    21
    34

    = 0.381 = 38.1%
    21
    55

    = 0236= 23.6%
    21
    89
    If we will take any other No than also the ratio remains near about same, have a look

    = 0.619 = 61.8%
    13
    21

    = 0.382= 38.1%
    13
    34

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