Issue in Chapter 4 Fibonacci Numbers

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

 

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?

 

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.