cluster is the key word, the more the lines cluster the better but in fib they call it confuence, that chart belong to apex82 post, seach on fibonachi queen for many examples of how to generate clusters of S/R.
This has nothing to do with trading. Prescription drugs are used in countless settings, in the ebb and flow of human behavior. So is herbal medicines. And nosepickers. And smokers. One time, 60 million bison used to ebb and flow over the plains. Should either of these be part of a trading plan? This is why fib is useless.
"I would have to argue that they do work. " This is the problem. People believe in things, and 95% of traders still lose money. Beliefs and arguing in favor is irrelevant. "Could you provide some actual proof of these studies? I would love to see them. " There are countless studies available. Hit the large libraries and start digging through the current and historical stacks, under financial periodicals, and serious financial works. Spend less time arguing for useless things, and more time seeing what does/does not work. At least, if you want to make money
You mean the harmonictrader.com track record "HT.com Market Positions Updated 01/01/04"?? O yea, that is proof. The site looks like it was put together by rank amateurs.
rcanfiel: your anti fibonacci rants are objectionable I suggest you go the page # 1, read the questions I ask and if you can't answer them, bugger off this thread
I did answer them. Fib levels don't work. Your questions are therefore irrelevant. If you find them objectionable, then disprove them. Studies have done that to Fib levels.
I would say that is about the depth of support anyone can ever proffer on Fib levels. After all, why try to defend something you pour a lot of money into? Much better to lose it to the market, because you prefer to believe it in, whether it works or not
http://charts.dacharts.com/2007-06-30/2007-06-30 03-22 YM #F 5.png I always liked the 1-2-3 lower high (as in this example) or higher low. I read a study (sorry don't still have it) some years ago on fib extensions. The results, if I recall, were somewhat disappointing if you were looking for consistent extension ratios. I ultimately settled on .786, 1.0, 1.62, 2.62, 3.62 and 4.62. I did just recently stop using extensions though. Seems the projections where price reversed often as not coincided with an S/R level somewhere to the left on the chart . And a well placed trailing stop will keep me in for most of the move anyway. Ultimately you have little or no way of knowing which extension this move will go to and simple price/volume action usually hints at likely reversals anyway. I'm not knocking those who choose to use fib extensions, I just decided I didn't need them.
62%A 1505.14 100%A 1485 162%A 1452 ....approximately spx turned back up after hitting 1485 or 100 percent of wave A. if we dont make it out of the woods here.... i figure we will probably see 1452 before long. as for comparing Fib/Elliott with S/R .... i think they just reflect each other. yesterday..... during the run up in futures from about 1512 to about 1530... on the retrace down.... we stayed at 23.6% forever.... bounced off support at 38.2% bounced off resistance at 23.6% etcetera.... the only level that did not serve as support or resistance .... was the starting point or 100% retracement level. after retracing the entire 18 point move.... we bounced at 1505 which was a previous support level. so far this correction/pullback has been a 3-3-5 ABC .... and unless we make new lows.... we are already in the first wave up of the next impulse wave. of course.... i could be TOTALLY WRONG i think Robert Miner's book on Fib/Elliott is good. ..... he says the market shows strong Fib/Elliott patterns about 50% of the time. respect.... to all.... PS. sorry about the long-winded post here.