The legendary woman who was reborn from the ashes

Chapter 89 Fibonacci helps you maximize your trading

As the magical code of nature, the Fibonacci sequence is not only unique in the field of mathematics, but also plays a vital role in the trading market, adding infinite possibilities to every transaction of investors.

Open any modern trading software and you will be pleasantly surprised to find that the Fibonacci retracement line has long become a standard tool, which shows how popular it is.

In the world of trading, the charm of the Fibonacci sequence lies in its simplicity and efficiency. There is no need to memorize those cumbersome patterns and complex breakthrough position relationships, just find a clear trend.

With just one click, you can quickly identify key resistance and support levels using the Fibonacci retracement line. This intuitive and practical analysis method is the key to the Fibonacci sequence's popularity around the world.

The mystery of the Fibonacci sequence goes far beyond this. Among them, the most classic structure is the ABCD extension structure. This structure not only inherits the essence of the Fibonacci sequence, but also makes clever expansion and innovation on the original basis.

In an upward trend, when the market reaches a certain height, it is usually accompanied by a certain degree of correction. According to the principle of the Fibonacci sequence, the strength of this correction often falls on key proportions such as 38.2%, 50% or 61.8% of the height of segment AB.

However, these ratios alone are not enough to fully grasp the pulse of the market. Therefore, Joel DiNapoli, a renowned technical master in the field of Fibonacci, proposed a more accurate ABCD extension structure.

This structure also uses the height of segment AB as the basis for the golden section, but the difference is that it adds the position of point C on this basis, thus shifting the golden section baseline upward. At the same time, Di Napoli also introduced new coefficients such as 0.618, 1 and 1.618 to make the division more precise and detailed.

Applying the ABCD extended structure to actual transactions, you will find that it is extremely powerful. It can always give accurate predictions on key resistance and support levels, helping investors grasp the rhythm and direction of the market.

Whether you are an experienced veteran or a novice entering the market, you can find a trading strategy that suits you under the guidance of the ABCD extension structure, thereby maximizing your transactions.

As pioneers and inheritors of the Fibonacci trading method, Larry Pesavento and Joel DiNapoli have made outstanding contributions to the development of this field with their profound theoretical knowledge and rich practical experience.

Their wisdom and insight not only allow traders to have a deeper understanding of the Fibonacci sequence, but also find new hope and possibilities in the trading market.

Under the guidance of the Fibonacci sequence, every transaction becomes more accurate and efficient. Explore more mysteries of the Fibonacci sequence and contribute to the prosperity and development of the trading market!

In the field of technical analysis, Fibonacci analysis is like a solid bridge, firmly connecting the past and the future. It has been unimpeded for decades and has illuminated the way forward for technical analysis scholars around the world.

"The DiNapoli Point Method" is a treasure of Mr. DiNapoli's wisdom. It is like a key that opens the mysterious door deep in EBC and Mr. DiNapoli's thoughts.

With the opportunity of in-depth cooperation between the two parties, EBC was honored to obtain the precious works signed by Mr. Di Napoli. Every page of these books seems to carry Mr. Di Napoli's efforts and expectations. They are not just a pile of words, but also a communication and inheritance across time and space.

When traders turn these pages, they seem to be able to feel Mr. DiNapoli's unique spark of thinking and gain deep insight into his exquisite understanding of technical patterns such as points, retracements, and swings.

It is worth mentioning that the DiNapoli point method does not simply follow the traditional Fibonacci analysis method. On the basis of inheritance, it boldly innovates and incorporates unique elements such as trend signals, directional indicators, and multiple signal superposition.

This innovative analysis method, combined with the principle of the golden ratio, can greatly improve the accuracy of point judgment and provide traders with more accurate market forecasts.

The use of trend signals is a highlight of the DiNapoli point method. It cleverly introduces the concept of replacing the moving average, and by adjusting the position of the moving average, it can more keenly capture market changes.

When a specific positional relationship appears between the K-line and the replacement moving average, it can often reveal the future trend of the market. For example, when the K-line slightly falls below the ordinary moving average and then gets support at the replacement moving average, it usually indicates that the market is about to rebound.

The replacement moving average plays an important role in judging a falling market. Once it forms a death cross with the ordinary moving average, it often means that the market has weakened and traders need to be extra vigilant.

The displacement moving average in the DiNapoli point method is not only easy to identify and judge, but also very practical. As long as traders practice a little, they can master its application skills and capture more profit opportunities in the market.

Mr. DiNapoli provides us with three different periods of displacement moving averages, each of which is carefully designed for different market environments and trading needs. By flexibly using these displacement moving averages, traders can grasp the pulse of the market more accurately and implement more robust trading strategies.

When deeply analyzing market dynamics, directional indicators and trend indicators play a vital role. Together, they reveal the starting opportunity for the market. Directional indicators are more like a beacon, illuminating the channel where the market ends and helping traders avoid market reefs.

In the DiNapoli point method, the status of the double penetration pattern cannot be ignored. It is shaped like a unique double top structure, but it is by no means equivalent to the traditional double top. The mystery of the double penetration pattern is that it does not simply indicate the top of the market, but reveals a special trend reversal signal.

In practical applications, this pattern combines the consideration of the replacement moving average, especially focusing on the analysis of the closing price. Imagine that when the market pulls up at the end of the trading day and breaks through the replacement moving average, but then quickly falls below it, this often means the fragility of the trend. This short and drastic fluctuation is the key information captured by the double penetration pattern.

In addition, the double penetration pattern also sets a critical threshold. When the market pulls up and breaks through this critical value at the end of the trading day, it must be accompanied by a short-term strong upward surge and then quickly fall below it. Such dynamic changes can serve as an effective signal of the end of the trend.

On the contrary, if the closing price stabilizes above the critical value after the pull-up breakthrough, then this indicates the failure of the double penetration pattern, and the success of the late-day pull-up may bring about a new wave of rebound.

In the DiNapoli point method, the combination of the golden ratio node trend signal and the direction indicator provides traders with a more accurate basis for judging the retracement price. Once the trend range is identified, we can further explore the mystery of the golden ratio node.

As the Elliott Wave Theory reveals, market fluctuations have an inherent cyclical characteristic. Whether it is an upward or downward trend, it can be broken down into different sub-trends according to a certain proportion.

This cyclical fluctuation pattern makes the golden ratio quantiles (such as 0.618 and 0.382) of different levels of market present unique differences, which is the core of the golden ratio node. In a complete five-wave market, there may be multiple such golden ratio nodes, which together constitute the key support and resistance areas of the market.

It is particularly worth mentioning that when the corresponding intervals of F3 and F5 in the DiNapoli point method (i.e. the area between the 0.618 percentile and the 0.382 percentile) overlap, this phenomenon is called golden superposition. It usually marks an extremely important turning point in the market, and has a very high reference value whether as support or resistance.

Although the golden node rate seems simple, it actually contains profound market logic and practical experience. As DiNapoli said, there may be multiple such key points hidden in a market, which together weave the market's volatility code, waiting for those who are interested to discover and interpret it.

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