Fibonacci Fans!

Discussion in 'Technical Analysis' started by easymon1, Jan 16, 2023.

  1. SunTrader

    SunTrader

    Everything is worthless in the hands of those who don't know how to use them correctly.
     
    #141     Apr 11, 2023
    MACD likes this.
  2. easymon1

    easymon1

    Fibs
    Looking for chart PA setups that trigger at support / resistance can be simplified by lines that denote these areas.
    Standard procedure involves lines that draw themselves rather than subjectively drawn lines.

    While Fibs can provide fine S/R, unless a guy has special software he's gotta
    draw them himself which can be subjective.

    I'm more likely to use a higher timeframe (60 or 30 minute) fib that
    appears and gets a reaction repeatedly on a 1minute chart than keep the 1m
    chart populated with Fibs.

    So I notice fibs if they're around and will use them for support or resistance if a price action trigger happens on one but
    it's easier to do stats on setups with lines that draw themselves, they are consistent and objective.
    A trader gets better at working with fibs the more that he works with them,
    he reads up on them and notices things.

    Plus, each additional line takes a slice out of the operator's concentration mindspace,
    so an object SR line appeals to me more than a subjective SR line.
     
    #142     Apr 11, 2023
    MACD likes this.