Freeze Tag Inc (FRZT)

[Drugdoctor]

Fibonacci-BOUNCE-The Golden Ratio as it applies to $FRZT

I posted this last night BEFORE the NEWS in case anyone is interested... REPOSTED...

http://www.investopedia.com/articles/active-trading/091114/strategies-trading-fibonacci-retracements.asp

This figure 1.618 is called Phi or the Golden Ratio. The inverse of 1.618 is .618. The Golden Ratio mysteriously appears frequently in the natural world, architecture, fine art and biology.

The ratio has been observed in the Parthenon, Leonardo da Vinci's Mona Lisa, sunflowers, rose petals, mollusk shells, tree branches, human faces, ancient Greek vases, and even the spiral galaxies of outer space.

Fibonacci Levels Used in the Financial Markets

The levels used in Fibonacci retracements in the context of trading are not numbers in the sequence, rather they are derived from mathematical relationships between numbers in the sequence.

The basis of the 'golden' Fibonacci ratio of 61.8% comes from dividing a number in the Fibonacci series by the number that follows it. For example, 89/144 = 0.6180. (See Investopedia's great video on Playing the Golden Ratio.)

The 38.2% ratio is derived from dividing a number in the Fibonacci series by the number two places to the right. For example: 89/233 = 0.3819.

The 23.6% ratio is derived from dividing a number in the Fibonacci series by the number three places to the right. For example: 89/377 = 0.2360.

Fibonacci retracement levels are depicted by taking high and low points on a chart and marking the key Fibonacci ratios of 23.6%, 38.2%, 61.8% horizontally to produce a grid. These horizontal lines are used to identify possible price reversal points.

Keep in mind that the likelihood of a reversal increases if there is a confluence of technical signals when price reaches a Fibonacci level.

Other popular technical indicators that are used in conjunction with Fibonacci levels include candlestick patterns, trendlines, volume, momentum oscillators and moving averages. A greater number of confirming indicators in play equates to a more robust reversal signal.



Ok folks - Here's What I have found.... Claytrader has also talked about his 200 MA trendline support on the 30 minute chart.... and I am watching a/d line - RSI nearing 50 support - volume contracting on the selloff - and the 61.8 Fibonacci Retracement level

As the Investopedia piece above says.... Look for a confluence of technical signals for a likelihood of a reversal..

So for purposes of my study, I took the closing price of the first day's breakout .0003 and subtracted the RALLY HIGH CLOSE price of .013 and got a range of .0127.... Now looking for the Fibonacci Retracement point of 61.8 percent from closing high of .013.... we get ..... ((.0048)) Mon close... .0044 This is really close folks... So now look at the Fibonacci Levels, the RSI nearing 50 Support, contracting volume on the selloff, and the likelihood of a major bounce seems likely..


So I have taken the chart and marked the Fibonacci retracement levels - along with the other indicators... Watch for a BOUNCE!