FIBONACCI GOLDEN RATIO
A Golden Ratio to identify and forecast the Extent of a Correction and a possible PULLBACK.
Fibonacci (1170-1240) An Italian Merchant became famous in Europe for his brilliant Mathematical Skills. He developed the Fibonacci Summation Series which Runs as follows.
1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144 …. & so on
The strong mathematics behind this tells us each number is added with its previous number and you get the next number; and again repeat the same till infinity.
This series and the Ratio is arrived at by dividing Current number by its preceding number.
8/5=1.60 ; 13/8=1.625; 21/13=1.615& 144/89=1.617 till infinity
Johannes Kepler (1571-1630) A German Astronomer referred to the Golden Ratio as a JEWEL in Geometry.
The Ratio becomes increasingly exact and gets closer to 1.618
There is much more to tell you about this. Stay tuned…..
Now lets look at the case study,
How Does the Fibonacci Golden Ratio actually helped our clients to Garner the 5-6% absolute return on price. i.e. Handsome profit of Rs 43,000/- on investment of Just Rs. 1,09,000/- approx. 40% Gain on Investment in Just ONE SINGLE DAY.
TRADERS BECOME WEALTHY IN ONE DAY, who had More Contracts.
Stock Name : UPL ( United Phosphorous Limited) Recommended Rate: 689 CMP:740
OUR TRADERS BOUGHT UPL FUTURES CONTRACT @ 689 @ closing time on 6th December AND Next Day SOLD IT AROUND 720, 730 AND SOME ARE STILL HOLDING on to it EXPECTING more gains in coming time, PATIENT TRADERS, Right.
UPL has been falling since it made a high of 902 ( See on chart point 1) on 1st August 2017,till 6th December 2017 it had almost lost 24% by falling to the level of 684 (see on chart point 4) in 85 trading sessions. The Short Sellers have minted money in it by patiently waiting for such times.
Patience is the Utmost important Element in Profitable Trading. Majority of the Traders do not have it. Alongside, the Short Selling is not everybody’s cup of tea. Especially, the New trading community.
What compelled to buy UPL @ 689. And that is Our Pre_Trading Homework.
We Identified that the Recent Low of 716 ( see on chart point 2) on 15th November & High of 768 see on chart point 3) on 28th November Gives us Fibonacci Level of 684.
How to calculate it 768-716=52; 52*1.618=84 then finally 768-84= 684
This is the level we were waiting for and finally after hitting the lows it could manage to close above this level & TRADERS GRABBED IT . The Stock Skyrocketed>>>>> (see chart)
How to Identify Such Stocks, Trend & make money ?
For more such questions and their answers ….. STAY TUNED
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