Don’t Ignore Fibonacci–This Is Why

  • October 29, 2004
  • Tsutae Kamada

Besides moving averages
and trendlines, we have to know important Fibonacci levels. Why? If
you watch CNBC, you might have noticed some reporters mention Fibonacci numbers
on the air. Also many chart analysis softwares come with Fibonacci tools. It
seems like Fibonacci is not so foreign to traders anymore. 

11:34:32

 Dow Jones Industrial Average ($INDU) is struggling to
take out the 50% Fib level. The index may be losing steam. $INDU is up 6.42 at
10010.96.

As you can see, Dow is stuck in between its 20- and 50-day moving average. Some
people may be wondering why it has to stop there. The answer, or one answer, is
the 50% Fibonacci level as we have pointed out in TradersWire. I believe more
and more traders are going to utilize Fibonacci. Someday soon, it will become an
ordinary tool just like moving averages and trendlines.

Have a nice day!

T.Kamada

If you have questions, feel free to mail them to me.