Fibonacci Fans!

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

  1. Here's a thought for you....

    Years back, I ran across a trader with the handle, "Fib Trader". I PMd him with the query, "there aren't all that many Fib indications... how do you make a trading model out of them?". He replied, "There are waaaaay more than you might think... take a close look." (Prior, I'd thought of Fibs only in the daily price chart. When I looked at intra-day, I found many more. As a "thumbnail" statement, I'd say there are probably "1-2 Fib trades EVERY day in the ES".. and often more.)

    While many traders want to claim, "Fib's don't work"... and "indicators don't work"... they both work GREAT*... when understood properly.

    FWIW...

    * I didn't claim "perfectly"... I just said "great".
     
    Last edited: Jan 17, 2023
    #21     Jan 17, 2023
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  2. VEGASDESERT

    VEGASDESERT

    the market is too chaotic to fit into perfect fib numbers like a snail shell or flower, but
    if you tell me to look for a 50% retracement, i could work with that. but thats
    nor really Fibonacci anymore i don't think.
     
    #22     Jan 17, 2023
    Strategery and murray t turtle like this.
  3. MKTrader

    MKTrader

    I guess you missed the sarcasm and parody parts...
     
    #23     Jan 17, 2023
  4. schizo

    schizo

    Oh?? :wtf: But how dare you. You can't desecrate the Fib like that.

    [​IMG]
     
    #24     Jan 17, 2023
    murray t turtle likes this.
  5. MKTrader

    MKTrader

    I'd say something but Greta would have me arrested.
     
    #25     Jan 17, 2023
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  6. comagnum

    comagnum

    Counter trends often retrace about 1/2-2/3. Here is an example of having fun with Fibs to short GE @ the key Fib levels.

    #1 & #2 Fib 61.8%, #3 & #4 Fib 50%.

    Fibs_GE_Bear.GIF
     
    Last edited: Jan 17, 2023
    #26     Jan 17, 2023
    easymon1 likes this.
  7. %%
    SHE should have listened a lot to;
    L Lynn = Coal Miners Daughter. In the News\Greta Thornburg Detained by Police @ German Coal Mine:D:D Of course she is upset she says ''you have stolen my dreams:caution::caution:''
    50% off sale is quite effective for sellers + some buyers.
    Put enough lines on a chart , you may hit something.
    I've got more out of 50 periods moving average, but they lag.
     
    #27     Jan 17, 2023
  8. schizo

    schizo

    Yeah, but you only knew that after the fact. Did you know it would reverse at 61.8% as it was happening? Probably not.

    How many times you thought it would reverse at 38.2% only to see it reverse at 50%? Or you thought it would reverse at 50 but not until 61.8? You can't trade willy-nilly like this.
     
    #28     Jan 17, 2023
  9. easymon1

    easymon1

    It is understandable that fibs, like pivs and m.a.s and horizontal and diagonal trendlines and channels can provide areas of interest for price action traders to focus on in order to take stats on price action around these levels.

    If only the fibs, etc, would draw themselves same as m.a.s and pivs do.
     
    #29     Jan 17, 2023
    comagnum likes this.

  10. You trade pretty quick trades generally speaking and you understand R/R. Who's to say someone doesn't have a set way and rule on when and how to draw the fib for consistency sake and than furthermore they wait for a close above a fib level and than a close back below to enter, with let's say a 1 risk to 3 reward ratio?

    They could be right less than 50% and still potentially make money. Not arguing necessarily for fibs, it's just you seem to doubt every other method other than your own, almost in an incredulous way(best I can gather by just judging through text).

    What are your thoughts on that?
     
    #30     Jan 17, 2023
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