Update 3:
Using Fibonacci in DayTrading
Fibonacci ratios are...............
0%, 23.6%, 38.2%, 61.8%, 76.4%, 78.6%, 100%
First of all find the daily volatility.
Where you will find the daily volatility. I am giving a link on NSE website. To see the volatility go through this
Link.
There you will see a attachment of daily volatility file in Excel. open this.
There you will find nifty current volatility in ( G ) columns.
and nifty previous day volatility in ( F ) columns
As you see,suppose previous day volatility in ''F'' columns is at 0.0066.
Multiply it with 100. 0.0066 x 100 = 0.66.
This is your previous day volatility. I am giving this example so that you can assume the fact. After that you calculate the range of nifty. I am telling you this formula to find the range of nifty for next day.
The previous day volatility is 0.66. That means nifty can move 0.66% in either direction.
Closing price of previous day suppose 5851.50 x 0.66% = 38.61 points.
Means nifty can go up 38.66 points and can fall 38.66 points. means lower range for nifty will be 5851.50-38.66= 5812.84 and upper range for nifty will be 5851.5+38.66= 5890.16
Now what is the importance of Fibonacci.
just see.
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