Chart Reading : Lesson - 2 (Part : 4)

In Lesson - 2, we are discussing Support and Resistance. Today I'll discuss regarding Fibonacci Retracement to determine Support and Resistance. If you don't know how to draw Fibonacci Retracement by charting software like Amibroker, you may visit the link first : http://dse-analysis.blogspot.com/2011/10/how-to-draw-fibonacci-retracement-line.html

Please, see the below Chart - 1 of Islami Bank. I did not draw anything on the chart. It's a blank chart.

Chart - 1 (Pls. click on the image to enlarge)

Now, I'm going to draw a Fibonacci Support line on a short period. Please see the below Chart - 2 :

Chart - 2 (Pls. click on the image to enlarge)

Chart -2 is little bit hazy. Okay, now pls. look at the below Chart - 3. I've taken a longer period to draw a support line.

Chart - 3 (Pls. click on the image to enlarge)

I hope Chart-3 is clear. Now, I'll give an example of resistance. Please see the below Chart -4.

Chart - 4 (Pls. click on the image to enlarge)

Does Fibonacci Retracement works in our market? Sometimes it works, sometimes is not. But we should know its use. Jokhon amader desh-er trader ra Fibonacci Retracement  ratio onusarey buy/sell bosatey obvosto hoye jabey takhon eta "Leonardo Pisano Bogollo" babu-r mathematics calculation er jorey joto-ta na besi kaj korbey tar cheyey emni-emni besi kaj korbey. by JC