2 methods of using fibo tools to project Price targets are: 1: use L - H and project levels from the L 2: use L - H and project levels from the start of W 2 since the fibo levels differ between # 1 and # 2 Q: which fibo is correct # 1 or # 2 ? Q: do you use specific fibo levels or, any fibo line for Price targeting ? Q: what determines your fibo methodology ?
Fibonacci levels can be defined any way that anyone wants. Fibonacci levels are an illusion. "Price targeting" reminds me of predicting the future. No one can consistently correctly and reliably predict the nonexistent future. Price targeting based on illusion is a mirage. <img src=http://www.turtletrader.com/images/fibonacci.jpg \img> Leonardo Fibonacci. From http://www.stator-afm.com/fibonacci.html#WhoFib "Leonardo Fibonacci was a mathematician in the 13th century who in 1202 published the first of four books, Liber Abaci. Liber Abaci introduced the Hindu-Arabic number system (numbers 1 to 9 including zero) to Europe. The Hindu-Arabic number system then replaced the roman numeral system which was used during this time."
Wallace, for targets I use only 1.62 and 2.62. I believe it all comes down to personal choice. There are a hundred ways to use those levels, and using them all would cover pretty much the whole chart. Find the ones you "like" the most, and stick with them.
Try and find any Fib advisory that has worked well for a long time. Realize that studies have shown that Fib levels are no better than random Learn
The beauty of Fibonacci numbers, as used in trading, is that there are so many of them. If one doesn't work, then there are countless others to choose from. You can never be wrong. Retrospectively, of course. That's why they work so well with Elliot. Real time, however, can be annoying.
I am no fib expert, but look at the retracement from the first bar where a trendline is broken or a big move is made. Price takes off in one direction, then retraces back. The retracement is very commonly about 38-50%.
Not really. One example has no meaning. It is called "anecdotal." Without enough of a sample size, it is statistically irrelevant
I would suggest using the most common ones such as 38.2, 50%, and 61.8 on retrace. For possible price projection, possible not probable, look at 100, 127.2/138.2, and 161.8.
Do you not believe in Fibs at all? They happen every day all the time. That does not make them the key to free money, but the retracement levels are very real. imho, on an intraday basis at least, they are often best measured from the point where a big move began, often not the low of the day.