Fibonacci Extentions for profit taking targets in FX ?

Discussion in 'Technical Analysis' started by hagadol, May 21, 2006.

  1. hagadol


    Is anyone here using Fibonacci Extentions for profit taking targets in FX ?

    If yes, can you explain how you are using and which levels do you consider important.

    I religeously use Fib retracements to help with my trading. Key retracement levels, 38.2 50.0 and 61.8 seem default, though when it comes to Fib Extentions, after much research, it seems that there are many different interpretations.

    Most common extention levels used seem to be 1.382 (weaker trend) and 1.618 (stronger trend).

    Anyway, interesting to here any thoughts.
  2. thebull


    in the past I used fibonnaci but now i mostly work with trendlines. if you give an example of what you mean (post a graph) then i could tell you a bit.

    The Bull
  3. May I ask how the Harmonic Pattern indicator would compare or be used in conjunction with the Ergodic indicator?

    Do you evaluate "pip to time" volume in your indicators calculations?

    Could you post your winrate and profit to loss ratio here?

    Michael B.

    Please excuse the questions. I find waves, time and harmonics to be rather exotic. Taking a non-standard approach to the markets reacting "predictively to the current" with a proper risk reward...I find interesting...If I could remove the "gambling" aspect of it from my mind it would help me greatly. The Study of Market behavior is a wonderful thing.

  4. Hi ElectricSavant,

    Firstly, Harmonic Pattern Trading is a very old concept although it's not that widely known.
    It's based on GoldenRatio/Fib and you can say Harmonic Pattern is a kind of ElliotWave Analysis.

    In recent years, Scott Carney wrote a book about Harmonic Trading in 1999.

    Harmonic pattern is basically purely on price actions and based on fibonacci retracement.
    Yes, fib or golden ratio appears or functions on time, but so far only on price levels. No volume info, too.

    I already explained the brief idea in my site, but it's in JP and now on the way to translate to English. Will be done in a few days. Sorry for that.
    Although I tried to explain the basic cocept in my site, my buisiness part is to write down the hamonic trading pattern to MT4 script. So far, you can Google harmonic trading. You would find some info around.

  5. Why do I feel that a dynamic measurement of this stuff could be the "Holy Grail" it the unknown part...or is it that I am just lazy and basing my suspicions to the vague references all over the internet?...I stated all the componets in my question above and I think there are a few here that understand it.

    I am going back to my forex arbing room

    Sorry for the interruption...

    Some of you younger more nimble-minded fellah's could spend time on this and prolly come up with something...hey it would make for interesting trading...Hint...look for the correlations or divergencies between "pip velocity", "risk/reward/trendline", "Ergodic+harmonics"...

    when you "get it" send me 10%

    Michael B.
  6. TGM



    U must be making big dough ---u are getting arrogant!!! I luv it. Of course I came to many of these conclusions years ago. So I agree. My whizzy software does Gartley Patterns which are harmonic ---but I canot figure heads from tails???? They look cool and exotic tho!
  7. TGM,

    I am making the dough....Electric does the

    If he would just shut up, I would get us some real funds to trade...

    Did you read this last post?...what is he talking about? I never read so much of nothing.

    I can just see it now...The ET hall of famers playing around with esoteric static lines trying to predict the future. This I gotta see.

    I must go make dinner now, Oanda narrows the spreads soon.

  8. TGM


    Oh no disrespect Mrs Savant----everyone knows who has the brains in the family!