Alif Afifi
OP
WealthGen
:
That is Fibonacci Retracement, I use it to find the dynamic support and resistance, here as you can see the dynamic support could be at 50% level which is at RM1.38, meaning that the price would likely rebound at that level.
WealthGen
Alif Afifi
OP
:
Thanks for the explanation, appreciate it. How do you decide what is the base (0%) and what is the top (100%)? I know its judgement call, but just wanted to understand your reasoning.
Alif Afifi
OP
WealthGen
:
No problem. As for your question, I determine the swing high and low based on today's candlesticks, then switch to a lower timeframe.
Next, I plot the swing high at the day's highest point and the swing low at the day's lowest point.
I mostly use this method for stocks that break out to a 52-week high, in order to identify whether the price movement can sustain above the 50% level or not.
WealthGen : What is the vertical line on the chart and what does it mean?
Alif Afifi OP WealthGen : That is Fibonacci Retracement, I use it to find the dynamic support and resistance, here as you can see the dynamic support could be at 50% level which is at RM1.38, meaning that the price would likely rebound at that level.
WealthGen Alif Afifi OP : Thanks for the explanation, appreciate it.
How do you decide what is the base (0%) and what is the top (100%)? I know its judgement call, but just wanted to understand your reasoning.
Alif Afifi OP WealthGen : No problem. As for your question, I determine the swing high and low based on today's candlesticks, then switch to a lower timeframe.
Next, I plot the swing high at the day's highest point and the swing low at the day's lowest point.
I mostly use this method for stocks that break out to a 52-week high, in order to identify whether the price movement can sustain above the 50% level or not.