I was trying to analyze one stock, where there was a link called Fibonacci value, which shows different prices of stock as bellow:
Trading :: Fibonacci Values Stock Code ANDPRA Exchange NSE 1st Fibonacci Value 343.00 2nd Fibonacci Value 338.89 3rd Fibonacci Value 337.63 4th Fibonacci Value 336.36 5th Fibonacci Value 334.79 6th Fibonacci Value 332.25
Fibonacci Retracements are ratios used to identify potential reversal levels. These ratios are found in the Fibonacci sequence. The most popular Fibonacci Retracements are 61.8%, 50% and 38.2%. Ratio of 61.8% is referred as golden ratio and holds highest significance of all.
After an advance, Fibonacci ratios are applied to price advance (difference between extremes) to define retracement levels and forecast the extent of a correction or pullback. Fibonacci Retracements can also be applied after a decline to forecast the length of a counter trend bounce. These retracements can be combined with other indicators and price patterns to create an overall strategy.
Can anyone make me understand what this Fibonacci values says about this stock?