The circles themselves have the same characteristics

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Greetings from the 13th century or how to work with Fibonacci arcs 04 Jan. 2018 17:36 Fibonacci arcs. Theory and practical application for Bitcoin forecasts. Dear Friends, Little by little, after the holidays, I decided to fulfill the request of my dear readers and tell about Fibonacci arcs in my first learning article of 2018. If you try to draw them on your own, then with the default settings it will look approximately like this: LiteFinance: Theory and Practical Application for Bitcoin Forecasting |  Litefinance This beauty is built like the usual Fibonacci correction levels. LiteFinance: Theory and Practical Application for Bitcoin Forecasting |  Litefinance To do this, we need two extremes (low and high in the given period within a trend) and connect them with a line. Unlike Fibonacci correction levels, the arcs will look like curves extending from the center of the connecting line.

LiteFinance: Theory and Practical Application for Bitcoin Forecasting |  Litefinance Therefore, if you draw the Fibonacci correction levels from the center of the given trend, the marked levels will intersect tangentially with the Fibonacci arc. as  Peru Mobile Number List correction levels and mark key support and resistance levels on the chart. However, the arcs mark key points on the axes not only in the price plane, but also in the time plane. Therefore, we can look into the future and anticipate the price movement of cryptocurrencies. It is obvious, that we use Fibonacci arcs not primarily to find out the levels within the given trend, but to identify its projections, extended into the future. LiteFinance: Theory and Practical Application for Bitcoin Forecasting |  Litefinance By default, these levels are trend projections in the ratio of 1.618, 2.618, 3.618, 4.236, 4.618.



As we see in the chart above, the circle at the 1.618 level is a strong resistance level. The price curve had been moving parallel to the circle for quite some time, without even touching it. Then, after the intersection, the local trend apparently changed its direction and the market started trading flat. After having intersected the arc at the 2,618 level, the bitcoin ticker again made a momentum rally and changed the trend direction. So, to summarize, we can say that Fibonacci arcs have the following characteristics: They identify support and resistance levels, based on price and time They mark the probable trend reversal zone on the coordinate plane They mark the area of ​​likely directional momentum price movement Now, the most interesting part of the article begins, where I would like to share my experience of applying this tool.