Fibonacci Cluster

31. Aug. 2020

Fibonacci Cluster can be used for live day-trading to anticipate possible movements.

Ever line is a Support and Resistance level.

Median = Middle Line
R1 & R2 and S1 & S2 are possible reversal zones.
Upper Limit and Lower Limit are stronger levels.


Conditions:-

• If the Lower Limit line is horizontal and the stock is moving upwards along with the Upper Limit Line, such movements indicates bullish trend.
  
• If the Upper Limit line is horizontal and the stock is moving downwards along with the Lower Limit line, such movements indicates bearish trend.
  
• If the price of a stock is at Upper Limit and still moving upwards along with the Upper Limit line, such movements indicates strong bullish trend.
  
• If the price of a stock is at Lower Limit and still moving downwards along with the Lower Limit line, such movements indicates strong bearish trend.
  
• When the cluster in expanding outwards in both directions, such movements indicates increase in volatility. The trend is strong.
  
• When the cluster is contracting inwards from both direction, such movements indicates that the stock will now move sideways.