Fibonacci Levels: How do you know when your wrong?

Discussion in 'Technical Analysis' started by User50000, Mar 17, 2004.

  1. I have been watching fibonacci levels on intraday charts for a little while and I've noticed that while there are times when the market will stop and reverse after just printing a level, most often the market will push through the level (in some cases just a tick or two). My question is: How do you determine when the retracement level has *truly* been violated? I have read that some traders use the midpoint between two levels (say halfway between the .382 levels and the .500 levels) to determine when a level has been violated. This seems reasonable to me but I would appreciate any other insight you may have to offer.

  2. iriekity


    Think it is subjective you have to take in the overall market as well as the FIB levels to get a real feel for when is a good time or not. Here is what I use.

    Good luck.
  3. BSAM


  4. dbphoenix


    Are the Fib levels the only support and resistance you're depending on?
  5. EtfTrader

    EtfTrader Guest

    It's mathematical voodoo nonsense. If the only faith you have in your trading ability is based on numerical sequence, then you've fallen into the camp of fools.

    Then again, I only go long with Uranus lines up with the sun.
  6. EtfTrader

    EtfTrader Guest

    How do you know when you are wrong?

    Oh man. I've read it all.

  7. jem


    front runner. You have asked one of the eternal trading questions. I have yet to hear a good answer besides it depends on your risk reward parameters.
  8. Price should not fall 3 points below a fib level. If it does, you are wrong. Avoid trading the 50% fib level, and stick to .38, .62, 0, and 100.