How to draw Fibonacci circles?
For the trendline to be tilted at 45 degrees and the circles are perfectly rounded, hold down the Shift key while drawing. The circles are drawn at 11 different levels according to the ratios of Fibonacci keys of 23.6%, 38.2%, 61.8% and 100%.
For trace of the Fibonacci extensionswe must take a low point of our first impulse wave (0), trace our retracements to the high point which corresponds to the end of the first wave (1), then retrace to the end of the correction in wave two (2).
These lines are drawn by first defining the high and low of a bullish or bearish move on a chart. Then we apply the ratios of Fibonacci the distance between this highest and this lowest. The level corresponding to 0.0% crosses the starting point of the retracement.
The pivot point is the basic support/resistance, and we deduce 3 levels of support and resistance from it. The calculation is done as follows: The pivot points of Woodie are very similar to the classic pivot points, but give more weight to the closing value (the Close).
If, for example, a pivot point is at the same level as a p or 200-day average, this can reinforce its resistance or support action.
The pivot point indicator is used to determine support and resistance levels and can complement the determination of trend lines. Pivot points can be used on different markets such as stocks, currencies and commodities for example.
Simply put, a pivot point and its support/resistance levels are levels where price direction can possibly change. The reason pivot points are so attractive is that they are “objective”.