I am planning to research on the topic but I need to get few facts and doubts cleared.
I am planning for Fibonacci retracement analysis of equity shares so How much should be the time period or time frame (and what sort of graphs) which is usually used for effective Fibonacci retracement analysis? Given that I should looked at 4 hour graphs for Fibonacci retracement for forex analysis.
Please let me know if I’m not clear with any part. Thanks in advance.
Same here; basically H4 is one of my favorite time frame & I mostly use this period for all kinds of analysis.
There is no perfect time frame to use with Fibonacci. You could as well move up to the weekly chart and still find that they apply there. Simplest way to trade Fibonacci is to use them according to your trading plan.
Mutisya_09 is quite right. It will work as well on any time-frame.
That said, there are things to bear in mind -
your Fib level might coincide with another support or resistance that you haven’t charted - such as a prior price level or a moving average or a trend channel: hunt around for these. This sort of confluence will make a fib level stronger if its present, weaker if its not.
Fib levels are calculated to decimal points: just because they are accurately calculated doesn’t mean they are accurate predictors of price - allow for a little volatility around your Fib level.
You can mix time-frames and get Fib levels from more than one but the longer-term levels, like all support/resistance, have more meaning than the shorter ones.
Thank you @tommor, @Mutisya_09 and @LauChoKun!
Always welcome mate; have a great day & hope, everything will be okay.
until now, I have yet to understand diagram of fibonacci. It makes me dizzy.