Rangarajan, your interpretation is wrong, Volatility based you have to see the buyabove and sell below level.
Not low and bottom.
Just, calculate Mcdowell today and see, it might have hit top and moved fast.
This is for your information.
To make the Fibonacci retracement work
dynamically and most effectively we
need a dynamic price point. The dynamic price point is nothing but a high and low
which has
not happened in the chart and which is yet to happen in future. The 2nd
property of the dynamic price point is that it must be
derived from a
probability
estimate.
This concept of volatility if applied properly and systematically for trading; it alone
is sufficient to enable you for making money successfully.
Now we got 2 dynamic price points which has not occurred in the price time chart and
has the great possibility to occur in future.
Between the trend identification and final target 0.5, 0.618, 0.786, 1, 1.272, 1.618
Fibonacci
ratios must be used to derive the
intermediate targets.
So,once we know the Most probable High & Low, we can trade confidently.Add to that the Levels.
Look at NF,High today.5377.7 & the 62% is 5378.