STOCK MARKET

The ratios found from the Fibonacci Sequence can be used to help find support and resistance levels of stock. Forbes magazine called this method a "timeless analysis technique."



Given data for one stock over a specific range, one can take the Fibonacci ratios and graph them as percentages.
If the range was selected correctly the Fibonacci ratios will change the direction the stock is moving thus allowing traders to know when to buy or sell.
As in the example shown above, the stock had a downward trend. Upon reaching 0.382 percentage, the stock then mving upward.
The ratio is known as a support level because it caused the market to begin increasing.
Contrary upon reaching the 0.50 which is the sum of two Fibonacci ratios, it cause the oppsite effect and the stock declines.

Here is an applet that I created to illustrate the use of Fibonacci ratios in the Stock Market.

STOCK MARKET APPLET