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Fibonacci numbers represent subsequent row of numbers 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144 and so long up to infinity. Secret of this row is that every subsequent number is related by the previous according to a certain ratio. At present, the best known Fibo coefficients are: 4.235, 2.618, 1.618, 0.618, 0.382, 0.236. Fibonacci Arcs represent curves, which serve as potential support and resistance lines on the chart. Fibonacci Arcs were notedly popularized by a well-known trader, financier and founder of the wave theory Ralph Nelson Elliott.
Popular article: Chaikin Oscillator
It is commonly known that the concept of Accumulation /Distribution indicator is contained in the theory stating that force of pressure of purchasers or vendors can be calculated in relation to Close price to High and Low of a respective time period. In other words, it can be stated that when price closes in the upper half of trade range (distance between High and Low), purchasers dominate on the market, or when price closes in the bottom half of trade range, there is a pressure from the side of vendors.
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