It is very interesting especially for a technical analyst to check and confirm the how each move of the index corresponds to the fibonacci ratios. It not only encourages the analyst but also boosts one confidence in these ratios. If we analyse the up-move of NIFTY since JUNE 12 all the three swings are in perfect unison in arriving at the top of 5700. Here is how..
161.8% of the first move is 5705
161.8% of the second move is 5705
138.2% of the entire move of first and second is 5707 !!!!!!!!
Click on the chart to see it more clearly.
If NIFTY were to start another swing up we can safely assume it should be 161.8% of the entire move from first to second swing. This should be around 5868. Incidentally this is the exact level where the move from June12 will be 100% of the move between Dec11 and Feb12.
161.8% of the first move is 5705
161.8% of the second move is 5705
138.2% of the entire move of first and second is 5707 !!!!!!!!
Click on the chart to see it more clearly.
If NIFTY were to start another swing up we can safely assume it should be 161.8% of the entire move from first to second swing. This should be around 5868. Incidentally this is the exact level where the move from June12 will be 100% of the move between Dec11 and Feb12.
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