Calculators
Fibonacci Retracement
A term used in technical analysis that refers to the likelihood that a financial asset's price will retrace a large portion of an original move and find support or resistance at the key Fibonacci levels before it continues in the original direction. These levels are created by drawing a trendline between two extreme points and then dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%.
Fibonacci retracement is a very popular tool used by many technical traders to help identify strategic places for transactions to be placed, target prices or stop losses. The notion of retracement is used in many indicators such as Tirone levels, Gartley patterns, Elliott Wave theory and more.
How to Calculate Pivot Points
There are several different methods for calculating pivot points, the most common of which is the five-point system. This system uses the previous day's high, low and close, along with two support levels and two resistance levels (totaling five price points) to derive a pivot point. The equations are as follows:
R2 = P + (H - L) = P + (R1 - S1)
R1 = (P x 2) - L
P = (H + L + C) / 3
S1 = (P x 2) - H
S2 = P - (H - L) = P - (R1 - S1)
Here, "S" represents the support levels, "R" the resistance levels and "P" the pivot point. High, low and close are represented by the "H", "L" and "C" respectively.
How to use Pivot Points
Interpreting and Using Pivot Points
When calculating pivot points, the pivot point itself is the primary support/resistance. This means that the largest price movement is expected to occur at this price. The other support and resistance levels are less influential, but may still generate significant price movements.
Pivot points can be used in two ways. The first way is for determining overall market trend: if the pivot point price is broken in an upward movement, then the market is bullish, and vice versa. Keep in mind, however, that pivot points are short-term trend indicators, useful for only one day until they need to be recalculated. The second method is to use pivot point price levels to enter and exit the markets. For example, a trader might put in a limit order to buy 100 shares if the price breaks a resistance level. Alternatively, a trader might set a stop-loss for his active trade if a support level is broken.
Gann Square of Nine Calculator
Gann Square is a well known technique of W. D. Gann. The square chart provides traders with very accurate forecast on market support and resistance levels. It was said that W.D. Gann had once traveled to Egypt where he gained the knowledge of ‘Square’. Essentially, Gann Square is the structure of Egyptian Pyramid.
Gann Square is a well known technique of W. D. Gann. The square chart provides traders with very accurate forecast on market support and resistance levels. It was said that W.D. Gann had once traveled to Egypt where he gained the knowledge of ‘Square’. Essentially, Gann Square is the structure of Egyptian Pyramid.
Gann Square Theory can be divided into two streams:
1. Cardinal Square on Price; and2. Cardinal Square on Time.
The square on price calculates price support and resistance levels while square on time forecasts market reversals or reactionary days, weeks, months or even years, depended on the time frame of reference.
Besides, W. D. Gann also used another type of Square extensively, which was called Square of Nine. Square of Nine combines 9 units of price and 9 units of time to form a square with 81 cells. This Square chart also provides traders with market supports and resistance, both in price and time dimensions.
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