Author: Johnny Miao

Trend-Based Fibonacci Extension

Fibonacci Extension, available on most trading platform, is a derivative of Fibonacci retracement and is price levels created by tracking a price’s primary move and its retracement. The resulting price levels that are drawn on the chart represent potential support and resistance in the subsequent movement. In this way, it can help establish profit targets on trend trades or alert a trader to where potential trend reversal areas could develop.

Fibonacci retracement

Also known as the Golden Ratio, the Fibonacci sequence was introduced by Leonardo Pisano Bogollo (1170-1250), an Italian mathematician from Pisa, and can be listed as follows: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610……

Fibonacci Speed Resistance Fan

“Speed resistance lines” are an analytical tool in technical analysis that is used for determining potential areas of support and resistance. Developed by Edson Gould, a prominent market technician who was famous for his market calls in the 60s and 70s, this tool are trendlines based on Fibonacci retracement points (38.2%, 50.0%, 61.8%, etc.).

Fibonacci Speed Resistance Arcs

Fibonacci Arcs are half circles that extend downward from the top of a base line drawn between the session high and low. These arcs intersect the base line at the 23.6%, 38.2%, 50.0%, and 61.8% Fibonacci retracement levels and represent areas of potential support and resistance.

Fibonacci Time Zones

“Fibonacci Time Zones”, present as vertical lines based on the Fibonacci Sequence, is a technical indicator that identifies periods in which the price of an asset will experience a significant amount of movement. This technique contains a series of vertical lines that correspond to the sequence of numbers known as Fibonacci numbers (1,2,3,5,8,13,21,34,55, etc.), where each successive number is the sum of the two previous numbers.

Forex Index

The Forex Index is a technical indicator that uses price and volume to measure the force, or the power, of bulls behind particular market rallies and of bears behind every decline. The indicator was developed by Alexander Elder, and was introduced in his classic book, Trading for a Living.

Momentum

The Momentum Oscillator is a technical indicator that measures the change of price of a financial instrument over a given time span. In other words, it is a speed of movement indicator designed to identify the speed (or strength) of price movement. The momentum indicator compares the most recent closing price to a previous closing price (can be the closing price of any time frame).

William’s Percent Range

Developed by Larry Williams, the William’s Percent Range (%R) is a technical analysis oscillator that shows the present closing level of a commodity or stock relative to the high-low range over a given number of days, very similar to the Stochastic Oscillator, determining whether the market is overbought or oversold. The Williams %R is normally used to establish entry and exit points in the market.