Fibonacci Series | Fibonacci Retracement | Fibonacci Sequence Chart

Everything in life follows patterns and same also applies to stock prices. One can get the share prices upward and downward moving levels depending on the Fibonacci levels. Fibonacci numbers were developed by Leonardo Fibonacci and it is simply a series of numbers that when you add the previous numbers you come up with the next number in the sequence.

Here is an example:1, 2, 3, 5, 8, 13, 21, 34, 55. Stocks will often pull back or retrace a percentage of the previous move before reversing. These Fibonacci retracements often occur at three levels – 38.2%, 50%, and 61.8%. Actually, the 50% level really does not have anything to do with Fibonacci, but traders use this level because of the tendency of stocks to reverse after retracing half of the previous move.

See how when you add 1 and 2 you get 3? Now add 2 and 3 and you get 5, and so on. So how does this sequence help you as a swing trader?Well, the relationship between these numbers is what gives us the common Fibonacci retracements pattern in technical analysis.

Have a glance on the chart and you know where the stock is going to have a resistance or the support. The Fibonacci levels for the stocks as given in a chart is as appended below:

Fibonacci Series | Fibonacci Retracement | Fibonacci Sequence Chart 

Click Here to Get Free Stock market Tips in Email
Music can also be correlated to the stock market and for that one has to just observe the movement of the tip of the tongue while chanting "Na Ma Shi Va Ya" and we will realise that it is the directions of the five primary waves as defined in Elliott's Wave Theory. Moreover one can even plot the Nifty on music scales also as every thing in life is rhythmic in nature.
Nifty points on Music Scale -15 1/2 x

Music Scales	Nifty Levels
Shadjam	7936
Kakali Nishadham	7440
Kaisiki Nishadham	7146
Chatusruti Daivatham	6696
Sudha Daivatham	6355
Panchamam	5952
Prati Madhyamam	5642
Sudha Madhyamam	5286
Anthara Gandharam	4960
Gandharam	4759
Chatusruti Rishabham	4464
Sudha Rishabham	4232
Shadjam	3968

Thus if we analyse further we will find that Nifty has perfectly followed the musical scale numbers and same are as appended below along with the dates.
 

Nifty Level	Date	Nifty
Nifty High on	8th Jan 2008	6357
Nifty Low on	21st Jan 2008	4448
Nifty Low on	18th Mar 2008	4468
Nifty Low on	27th Oct 2008	2252

(See Chatusruti Rishabham in earlier scale)


Thus can we come to a conclusion that music lovers can be better traders. No formal research has been carried on the said subject and thus invite the opinion of the readers in this aspect. One can even check the Fibonacci series applicability to stocks and do remember to use the Fibonacci Calculator and make money from stock market as every thing is predictable in life including the human emotions.
Click Here to Get Free Share market Tips in Email