iiphos, when you say "let the market tell you when to enter", are you looking for some other confirmation at a particular Fib level, such as Support/Resistance, stochastic overbought/oversold... Would you please elaborate a little more. Could you perhaps provide an example of how you would use these fib levels in a trade. Thanks.
ToTrade; http://elitetrader.com/vb/showthread.php?s=&threadid=3427&highlight=lgto PEACE and good trading, Commisso
lets assume that the market has made a move up and starts to retrace. i'll run a fibo from where the move began to the top of the move and make a mental note where the .382 and .5 retracement areas are. i then watch the market action ("reading the tape"). if the market is going to continue higher you'll see buying. that tells me to enter the market. i use fibos as guidelines as to how far a market could retrace and not really change my bias that the trend is still intact. strong trends tend to come back to .382 areas, weaker uptrends tend to come back farther. does that help clarify? blindly buying/selling .382 or .5 or .618 retracements doesn't work.
tampa, is that directed at me? i'm not selling anything. i just tried to explain how i use fibos when i trade.
oh sure, your not sellimg anything - anything but SNAKE OIL! why don't you and Don, and Tony, and David just open a soup kitchen if you want to help people? you could serve Cream of Snake!
Commisso, Thanks for the fantastic post, that really answers my question. What is a "larger TF trend"? iiphos, Thanks for your post. Do you only use Fib retracement levels and tape reading to determine entry or do you also use other things like support/resistance, etc.. as well. So as far as I understand, the fib levels are just a guideline to be used with other tools to determine whether a particular level will hold or not, and thereby to determine trade entry.
ToTrade Try fib levels along with standard deviation, the quicker the move to a level and the distance from the standard deviation line should make that level more justifiable.