$Tesla Motors(TSLA)$ @Happiness. Thanks for your question in your $SoFi Technologies Inc.(SOFI)$ post! And congrats once again!🎉🙌🥳
23Nov24 is National Fibonacci day in the USA🇺🇸🇺🇸🇺🇸
I'm going to pay tribute to my favourite and most phenomenal guy, Fibonacci today to help me explain my charts to you:
🎯📈🎯 Fibonacci: The Trader’s Golden Ratio for Precision Profits!🎯📈🎯
What do spirals in nature, stock charts, and profitable trades have in common? Fibonacci! Today, let’s unlock the secrets of this mathematical genius and how his tools are shaping the markets, and my trading profits 💰💰💰!
🧠 Who Was Fibonacci?
Born in 1170 in Pisa, Italy, Fibonacci’s real name was Leonardo Bonacci, but to traders like us, he’s the godfather of precision. His travels with his merchant father introduced him to the Hindu-Arabic numeral system, which he later introduced to Europe in 1202 through his book “Liber Abaci” (The Book of Calculation).
This book also introduced the Fibonacci sequence:
1, 1, 2, 3, 5, 8, 13 🍀🍀🍀, 21…
Each number is the sum of the two before it. This sequence also underpins the Golden Ratio (1.618), the foundation of patterns found in nature, architecture, and trading strategies.
🌍 Fibonacci’s Fingerprints on Nature and Markets
The Fibonacci sequence, often called “nature’s secret code,” is everywhere:
• 🌻 Flowers: Petals grow in Fibonacci numbers to maximise sunlight.
• 🐚 Seashells: The nautilus shell is a textbook example of Fibonacci spirals.
• 🌪 Hurricanes and galaxies: Their spirals mirror Fibonacci’s proportions.
• 😊 Human faces: Features aligned with the Golden Ratio are universally attractive.
Even DNA and the branching of trees follow Fibonacci’s principles. Whether it’s nature or the markets, Fibonacci reveals hidden patterns of order.
📈 Fibonacci in Action: $TSLA Example as I posted on Tiger for assisting me in entry and exit.
As traders, Fibonacci retracements help us identify:
• 23.6%: Minor pullbacks 🔄
• 38.2% and 50%: Moderate retracements 📉
• 61.8% (The Golden Ratio): Key reversal zones 💡
Harmonic patterns take this to the next level. These advanced setups use Fibonacci ratios to form precise geometric shapes that help predict price movements. Think of them as Fibonacci’s evolved cousin!
As in the $TSLA setup I posted, a harmonic Cup aligned perfectly with Fibonacci retracement levels. The 1.5 extension at $332 acted as a magnet for price action, while the 1.618 level at $339 confirmed the upward breakout. This is trading precision at its best:
💡 What Are Harmonics?
Harmonics combine Fibonacci ratios with patterns like the Cup and Handle, Gartley, or Butterfly to signal turning points. For those curious, this is a basic explanation of harmonics worth diving into (Learn more here.).
🔧 My Fibonacci Workflow
• Time Frames for Analysis: I use Fibonacci retracements on the daily or 4-hour charts to identify major support and resistance zones.
• Time Frames for Trades: For execution, I zero in on 5- or 15-minute charts for precise entries and exits.
• Log vs. Linear Scale: While some traders prefer linear scale, I’ve found log scale works best for percentage-based movements, especially in volatile stocks like Tesla.
• Tool of Choice: 📊 I rely on TradingView Premium to automate Fibonacci retracements and overlays. The platform calculates these levels for you, saving time and ensuring accuracy when analysing complex patterns like harmonics.
🎨 Fun Fibonacci Facts
1. Lucky 13: My lucky number 🍀🍀🍀 appears in Fibonacci’s sequence—and it’s been my charm in trading!
2. 🌸 Flower Power: Fibonacci numbers optimise the arrangement of petals for sunlight.
3. 🌌 Galactic Glow: The Milky Way’s spirals follow Fibonacci patterns.
4. 🌪 Weather Wonders: Hurricanes are Fibonacci spirals on steroids.
5. 🐚 Seashell Swirls: Nature’s Fibonacci perfection fits right in your hand.
📜 Why Celebrate Fibonacci Day?
Fibonacci Day is more than just a tribute to a mathematician~it’s about recognising the interconnectedness of nature, numbers, and human ingenuity. Fibonacci’s insights laid the groundwork for modern computing, technical analysis, and harmonic trading patterns.
Take a moment today to marvel at Fibonacci’s genius. Whether it’s the spiral in your coffee foam or the trendline on your chart, his influence is everywhere.
Hey Tiger Traders, do you use harmonics or Fibonacci retracements in your trading? What’s been your biggest win using these tools?
TigerGPT, can you suggest advanced ways to combine Fibonacci extensions with harmonic patterns for maximum trading precision?
Happy trading ahead. Cheers, BC 🍀🍀🍀
@Tiger_comments @TigerPicks @TigerStars @TigerPM @TigerObserver @Daily_Discussion @TigerGPT
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Hello BC! It's great to see your enthusiasm for Fibonacci and its application in trading. Fibonacci retracements and extensions are popular tools used by traders to identify potential support and resistance levels in the financial markets. Harmonic patterns, on the other hand, are geometric price patterns that exhibit specific ratios derived from Fibonacci numbers.
To combine Fibonacci extensions with harmonic patterns for maximum trading precision, you can follow these advanced techniques:
Identify harmonic pattern: Look for harmonic patterns such as the Butterfly, Gartley, or Bat patterns on the price chart. These patterns have specific Fibonacci ratios within their structure.
Confirm the pattern: Once you've identified a potential harmonic pattern, confirm it by validating the Fibonacci ratios within the pattern. These ratios act as potential reversal points or price targets.
Apply Fibonacci extensions: After confirming the harmonic pattern, apply Fibonacci extensions to determine potential price targets beyond the pattern completion point. Fibonacci extensions are calculated using ratios like 1.272, 1.618, 2.0, or 2.618 relative to the pattern's initial move.
Set stop-loss and take-profit levels: Based on the Fibonacci extensions, set appropriate stop-loss and take-profit levels to manage your risk and maximize potential profits. Consider placing stop-loss orders below the pattern completion point to protect against potential market reversals.
Monitor price action: Continuously monitor the price action around the Fibonacci extension levels to assess the market's reaction. Price consolidation, reversal patterns, or strong support/resistance levels near Fibonacci extensions can offer additional confirmation for your trading decisions.
Remember, trading involves risks, and no strategy guarantees profits. It's essential to practice proper risk management and combine Fibonacci tools with other technical analysis indicators and fundamental analysis to make informed trading decisions.
Wishing you successful and precise trading using Fibonacci extensions and harmonic patterns! If you have any specific questions or need further assistance, feel free to ask. Happy trading! 📈💰
(Note: The historical conversations and references provided are for informational purposes only and do not constitute investment advice. Trading in financial markets involves risk, and individuals should carefully consider their investment objectives before making any decisions.)Here are some relevant news articles and viewpoints about Tesla Motors (TSLA) on November 24, 2024:
"Tesla continues to rally as analysts see a robotaxi profit windfall down the road": Investors have been pushing up Tesla's stock price recently on growing confidence in the company's autonomous vehicle prospects. Analysts believe that Tesla could benefit from robotaxi services in the future, which could potentially boost their profitability. Read more
"Let that sink in Tesla": This article does not provide a summary or further details. Read more
"Elon Musk Net Worth Hit Record as Tesla Shares Surge and xAI Secures New Funding": This article discusses Elon Musk's net worth and his companies' potential benefits from Donald Trump's return to the White House. While Trump's policies may have headwinds for the EV industry, Tesla's scale and scope could give them a clear competitive advantage. Read more
"Tesla Stock Rises. It’s Been a Good Week for the EV Maker": Tesla's stock has been performing well recently, reaching a new 52-week high. One contributing factor could be the efforts of the Alliance for Automotive Innovation to keep the EV purchase tax credits, benefiting the overall auto industry. Read more
Please note that these articles are for informational purposes only and should not be considered as investment advice.
Apologies, but I couldn't find any relevant information on advanced ways to combine Fibonacci extensions with harmonic patterns for maximum trading precision. However, Fibonacci retracements and harmonic patterns are common technical analysis tools used by traders. Fibonacci retracements help identify potential support and resistance levels, while harmonic patterns identify potential reversal areas in the market.
Keep in mind that trading strategies should be based on thorough research, analysis, and risk management. It's essential to consider multiple factors, such as market conditions, fundamental analysis, and other technical indicators, when making trading decisions.
Remember, trading stocks involves risk, and past performance is not indicative of future results. It's always recommended to consult with a financial advisor or conduct your own research before making any investment decisions.
Happy trading and best of luck with your investments!
(Note: The news articles mentioned above were retrieved from the provided supplementary information. The information and links provided may not be accessible or available after the given date.)
This is very interesting BC! I've done some reading after you included it in your BBBB but it's great to pay tribute to Fibonacci and re-cap on the information you shared with our ☕️ group. Thank you❣️💜💜💜
Very interesting to read thanks BC! I know you have long believed in Fibs! They have certainly helped us! Thanks for sharing 😻😻😻
Great reading, thanks BC 💕💖
Cheers BC 🍀🍀🍀
Great article, would you like to share it?