Fx-Technique » Fx Techniques

Graphical Fibonacci Studies

cymoo — Sun, 06 Feb 2011 08:29:12 +0000

Graphical Fibonacci Studies are used to in technical analysis as indicators of cycles and of support and resistance line.
There are several Fibonacci Studies:

Fibonacci Time Zones,

Arcs,

Fans,

Retracements,

Fibo Channel

Fibo Expansion

All of these studies are based on an interesting discovering made by an Italian mathematician Leonardo Fibonacci, who lived in a 12th century.
While studying the Egyptian pyramids he established a numerical pattern.

Fibonacci Numbers are a numerical sequence, in which subsequent number is equal to the sum of the previous two.

Here is a sample:
1,1,2,3,5,8,13,21,34,55,89,144,233,377 etc.

The Fibonacci numbers have a lot of mysterious properties.

For example, any Fibonacci Number approximates the product of the previous number multiplied by 1.618, or the product of the subsequent number multiplied by 0.618.

The Fibonacci studies allow us to create on a price chart several lines that stand apart from each other, a distance equal to the Fibonacci numbers.

For instance, Fibonacci Times Zones represent vertical lines spaced at intervals of 1,2,3,5,8,13 etc.
The interpretation of Fibonacci Studies in technical analysis is based on two assumptions.

One. The changes in trend occur regularly on the borders of a Fibonacci lines.

Two. The Fibonacci lines also serve as levels of support and resistance.

Harami Cross

cymoo — Tue, 15 Jun 2010 06:16:54 +0000

Harami Cross is a moderately reliable candlestick pattern which indicate the reversal of existing trend. Harami Crossresembles harami, the only difference is that in Harami Crossthe second day candlestick is a doji. The doji candlestick is completely lies inside the real-body of first day candlestick. Bearish Harami Cross formation occurs at the top of an uptrend and indicate the beginning of a downtrend. This formation includes a long bullish candle on first day followed by a doji on second day.

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Bullish Harami

cymoo — Sun, 30 May 2010 15:41:00 +0000

A candlestick chart pattern in which a large candlestick is followed by a smaller candlestick whose body is located within the vertical range of the larger body. In terms of candlestick colors, the Bullish Harami is a downtrend of negative-colored candlesticks engulfing a small positive candlestick, giving a sign of a reversal of the downward trend. A long 1st day with high volume in the existing downtrend brings complacency to the bears. The next day trades in a small range within the previous day’s real body. Light volume on the 2nd day should give rise to concern by the bears of an impending change of trend. Look for higher prices over the coming days, especially if the next day provides confirmation of a trend change by closing higher.

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