Presentation on theme: "The Art of Fibonacci Trading"— Presentation transcript:
1 The Art of Fibonacci Trading The Art of Fibonacci Trading Presented by Aditya & GemaThe Art of Fibonacci Trading
2 Known as : Leonardo Pisanus Leonardus filius BonacciLeonardus Bigollus“Bigollo” – Tuscan dialect – meaning “blockhead” or “traveller”Never referred to himself as “Fibonacci”Medieval biographies and portraits rare: All pictures and statues of Leonardo of Pisa are only from artists’ imaginationsExact date of birth and death not known
3 Background HistoryLeonardo was born 2 centuries after cultural and economic slowdown in Europe known as Dark AgesCommercial Revolution was well underwayBoth local and international trade occurredMediterranean Sea linked regions representing different religions, political entities and culturesThree Italian cities dominated imports and exports: Venice, Genoa and PisaPisa: population of approx. 10,000 and was a “commune” – independent republic
4 More History…His father, Giuliemo, held a diplomatic post in Bugia (North Africa)Leonardo travelled extensively with his father: Egypt, Syria, Constantinople, Sicily, France, GreeceLeonardo acquired much knowledge of various mathematical systems and texts during his travelsSome argue he is not a true mathematician but only an author of a very successful text (Liber Abaci)Yet, he did also compile his own techniques, theorems and facts when he published his findingsWhen we think of Fibonacci, we think of his introduction on the Hindu-Arabic numerals (HAN) to the Western world and the famous Fibonacci sequence
5 MORE ABOUT FIBONACCIFibonacci is one of general revelation from God to mankind that gave amazing contributions to science and a lot of life aspectsMore about Fibonacci can be seen at
6 1. The Miracle 2. The Psychology of Golden Ratio 3 1. The Miracle 2. The Psychology of Golden Ratio 3. Fibonacci retracement 4. Fibonacci expansion 5. Retracement Vs Expansion 6. The power of Basic of Elliot Wave Analysis 8. Aplying Elliot Wave Analysis & Fibonacci 9. Entry & Exit Rules 10. Identifying Divergence. 11. Aplying divergence, fibonacci & wave analysis
7 Special Thanks to:Mr. Mochammad Yusuf (Chairman Asosiasi Analis Teknikal Indonesia)Mr. Imran S. DalimiMr. Cornelius Luca (Market Technician Association)
8 Percentage retracements All trends are subject to price retracements and reversals.Trend analysis should help you identify trend reversals.
9 Bullish TrendDikatakan Bullish jika harga membentuk pola HH (higher high) dan HL (Higher Low) dimana harga selalu membuat new high. Jika terjadi koreksi/penurunan tidak pernah melampaui harga low dari koreksi sebelumnya
11 Bullish Reversal Point HHLHLLHLReversal PointNote: Reversal point ketika harga menembus trough sebelumnya
12 Bearish TrendDikatakan Bearish jika harga membentuk pola LH (Lower High) dan LL (Lower low) dimana harga selalu membuat new Low. Jika terjadi koreksi/Kenaikan tidak pernah melampaui harga high dari koreksi sebelumnya
40 Extensions When a rebound from retracement of a previous trend exceeds the previoushigh (in an uptrend) or low(in a downtrend), erase theold retracements andapply extensions.
41 ExtensionsRetracement ratios are equally valued for targeting prices on extensions.In the case of the Gann ratios, the extensions will be placed at: 1.125, 1.25, 1.375, 1.5, 1.625, 1.75 andIn the case of the Fibonacci ratios, the extensions will be placed at: 1.382, 1.5 and
58 The power of retracement 2/3 (Bearish) Skenario: Sell 1 lot di retracement 66. Sell double cover (2lot) di Retracement 1001 lot di likuidasi di retracement 66 1 lot di hold sampai retracement 0 (Take profit
59 Oscillator IndicatorRelative Strength Index (RSI)Stochastic OscillatorWilliams % R
80 Types of DivergencesDivergences, whether bullish or bearish in nature, have been classified according to their levels of strength. The strongest divergences are Class A divergences; The medium are Class B divergences; and The weakest divergences are Class C. The best trading opportunities are indicated by Class A divergences, while Class B and C divergences represent choppy market action and should generally be ignored.
81 CLASS A DIVERGENCEClass A bearish divergences occur when prices rise to a new high but the oscillator can only muster a high that is lower than exhibited on a previous rally. Class A bearish divergences often signal a sharp and significant reversal toward a downtrend.Class A bullish divergences occur when prices reach a new low but an oscillator reaches a higher bottom than it reached during its previous decline. Class A bullish divergences are often the best signals of an impending sharp rally.
82 CLASS B DIVERGENCEClass B bearish divergences are illustrated by prices making a double top, with an oscillator tracing a lower second top.Class B bullish divergences occur when prices trace a double bottom, with an oscillator tracing a higher second bottom.
83 CLASS C DIVERGENCEClass C bearish divergences occur when prices rise to a new high but an indicator stops at the very same level it reached during the previous rally.Class C bullish divergences occur when prices fall to a new low while the indicator traces a double bottom. Class C divergences are most indicative of market stagnation - bulls and bears are becoming neither stronger nor weaker.