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Issue in Chapter 4 Fibonacci Numbers

Discussion in 'Enjoying DIYTA? Share it here' started by hsandilya, Oct 7, 2015.

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  1. hsandilya

    hsandilya New Member

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    Hi Shabbir,

    I have just started reading your book and currently in Chapter 4 where you have explained about Fibonacci numbers.

    Now, I am facing some difficulties in understanding this chapter, specially the graph in Figure 13.

    In this graph you assumed the level of 5345 as 0.0% and then calculated the following
    23.6% - 5566.5
    38.2% - 5703.5
    50.0% - 5814.0
    61.8% - 5925.0
    76.4% - 6062.0
    100% - 6283.5

    I am not sure how did you arrived at these numbers?

    I rechecked my numbers at http://in.investing.com/tools/fibonacci-calculator
    and they also differs with your numbers and validated my numbers.

    So can you please tell me the steps involved in calculating these numbers so that I can correct myself.

    Regards
    Hrishikesh
     

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    hsandilya, Oct 7, 2015
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  2. shabbir

    shabbir Administrator Staff Member

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    5345 and 0% and 6283.5 as 100%

    So 50% of this range would be ( 6283.5 - 5345)/2 = 5814

    Similarly find 33% of this range and that other numbers.
     
    shabbir, Oct 8, 2015
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  3. hsandilya

    hsandilya New Member

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    Hello Shabbir,

    Sorry for the delayed reply. Appreciate your response. I can now understand how you calculate this range.

    But in a live market, where how do I calculate the base (0%) so that I can calculate the other percentages as well? Basically, how do I apply this rule in a live market?
     
    hsandilya, Oct 20, 2015
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  4. shabbir

    shabbir Administrator Staff Member

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    Normally as I apply it, in a long down trend or up trend to identify the potential reversal point
     
    shabbir, Oct 20, 2015
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  5. hsandilya

    hsandilya New Member

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    Well, I am someone who first invested in the market in Late 2007, as advised by a broker and lost few lakhs before I decided to leave the market and stick to mutual funds with a long term view.

    But after buying your books, for last few weeks, I am again trying my hands at trading. Of course I am using http://virtualstocks.icicidirect.com/ to validate my learning. I still don't have the guts to invest in a real market.

    But I am very happy to inform you that by employing methods learnt in your book, I did multiple tradings in Sun Pharma and made a huge (virtual) profit.

    Thank you for the knowledge. Hopefully I will be back in the real market son.
     
    hsandilya, Dec 8, 2015
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  6. shabbir

    shabbir Administrator Staff Member

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    Glad to see it is working for you @hsandilya
     
    Last edited: Jul 16, 2017
    shabbir, Dec 11, 2015
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