# TECHNICAL ANALYSIS COURSE APPLICATION FOR: Fibonacci / Candlesticks Graphic designer from Bsb COURSE IN TECHNICAL ANALYSIS - APPLICATION

Fibonacci and Candlestick CONTENTS 1 - DEFINITION OF TECHNICAL ANALYSIS 2 - THE TECHNIQUE 3 - Fibonacci numbers 3.1 BRANDING 3.2 - RETRACTION (CORRECTION OF A MOVING HIGH) 3.3 - EXPANSION - THE N UMBER "HEAD" - (OR PIVOT FOR SOME). 3.4 - 4 SYMMETRY - Candlesticks 4.1 - THE MA IN FIGURES 4.2 - REVERSAL OF FIGURES 5 - THE UNION OF TWO TOOLS 6 - IMPLEMENTING THE STOP 1 - DEFINITION OF TECHNICAL ANALYSIS If opposed to fundamental analysi s. While this looks at the company (dividends, future investments and so on.,) T o TECHNICAL ANALYSIS focuses on the market in which the action is being negotiat ed. To fundamental analysis is the market is not efficient in terms of informati on and, according to this, the prices do not instantaneously reflect all relevan t information possible to determine the stock price. ANALYSIS TECHNIQUE, in turn , uses a set of analytical tools and techniques to achieve projections of future stock prices, which are not random variables. The most widespread techniques ar e: - Dow theory - the theory of elliot waves - The Fibonacci series - Candlestic ks - Using Indicators. 2 - THE TECHNIQUE In our case, we will study the application of Fibonacci number s in graphs and combine the application of such numbers in a strategy with the u se of candlesticks. 3 - The Fibonacci numbers The Fibonacci series (Italian mathematician) is made s o that each number is equal to the sum of the two that precede it. So we have th at: 0 +1 = 1 1 +1 = 2 1 +2 = 3 2 +3 = 5 3 +5 = 8 5 + 8 = 13 and so on series bec ause it is: a, 1, 2 , 3, 5, 8, 13, 21, 34, 55, 89, 144 The ratio of two consecut ive numbers tended to stabilize in: Â½ = 0.5 2 / 3 = 0.66 3 / 5 = 0.60 5 / 8 = 0 .625 8 / 13 = .615 13/21 = .619 21/34 = .618 34/55 = .618 55/89 = .618 Thus: app lied to graphical analysis, it was discovered that the conclusion of a movement (of low or high) can be predicted using the basic relationship of the Fibonacci series, ie 0.618, 0.382 and its complement approximate. In percentage terms to 6 2% and 38% respectively. In addition to the percentages cited, 38 and 62%, is al so greatly used the percentage of 50% (and less use of the extremes: 23.6 and 78 .6%), as we shall see, when we deal with expansions. See an example of correcting a movement of a paper (TNLP4) in the study1 From what we can see from the chart, in the period from May to August, we had a move that left the TNLP4 quotation of 27, reached the top 50 and dropped to 36, which represented just 62% correction from the previous movement. We note, howev er, considering the same period, at times the percentage of 38% and 50% of the f all caused the movement of the paper attempt to go up, both stumbled in the perc entage of 23.6%. 3.1 - Marking of Fibonacci numbers study1 What we saw was evide nce that stock prices tend to move obeying the percentage of the Fibonacci serie s. We could see also that the downswing ended exactly the percentage of the numb er of 62%. But how to make this appointment? The two key markers of the Fibonacci series to predict the "expected" future prices are: 3.2 - RETRACTION - forecast the size of the fall To make an appointment retraction of a movement, or can calculate th e time when the Paper can "stop" to fall, apply the fibonacci from the lower sto ck price (in the period in which they want to analyze) to its full credit. This is the simplest part of the theory, but clearly this is only possible to apply o n a graph with the help of a program able to do so, as is the case with Metastoc k, Apligraf, Broadcast and others. That teach how plot tool in the chart. Altern atively, for those who do not have a graphics system is the calculation of FIBOS