The fib lines are not arbitrary. That is there are definite rules for drawing and then understanding the use to use the fibs to successfully and consistently profit. I will be happy to explain, but it is not a few sentence explanation. If you wish you can PM me or I will attempt to provide the information on this thread. There has been little real interest expressed and therefore I have not been actively posting here. It is my honest intention to be of help to those who have a sincere interest. I do not have any alternative motive such as selling anything -- I simply was attempting to share what has been very successful trading for me. It seems that ET members are paranoid about "trolls" and are unable to identify when value is presented "for free". So let me know either here or by PM how I may contribute to your understanding. The Fibs are worthless unless it leads to Predictive and proveable trading methods. So I will start posting again with useable information once I see some interest. Thanks.
You had me at predictive. I want to know why you drew it there rather than on the place next to it, and my reason for asking is because most people draw those things in hindsight so it looks like they were correct. You know this.
Personally I have no faith in fibs apart from the 50% level as a potential target. However, for quickly seeing context the fib tool found in every chart package is very useful when the levels are redefined to be equally spaced. In that case the tool allows a number of equally spaced horizontal lines to be quickly placed on a chart, only two lines need to be manually positioned and the rest follow automatically.
Yes, I wanted to provide assistance to those who may be struggling with falacious information that is proliferated by the financial industry, including the brokerage community, as well as the book and course sellers. What I discovered is most do not have the necessary ability to discern what works and what will not. Most are distracted by "shiny baubles" that offer instant gratification and adopt the trading system du jour (as in Soup du jour). So, Sprout, you are quite erudite on trading and have done considerable research and if you have read this thread carefully -- I would believe we have discussed this before. No hard feelings, but I don't know how to provide you with answers that would satisfy. I have provided charts that were real "live" trades. I agree that I have not been motivated to spend more time and energy to provide what each reader desires in a fashion that they require. However, I am going to spend a bit more time here and see what happens. Please understand that I TRADE for a living and those who post often in ET have way more time than I, because perhaps they don't trade. Peace...
MACD, lines produced by Fibonacci, Gann studies, etc. often turn out to be good reversal points. Some argue it is because many are using the same lines. However, there are many lines. What do you use to identify when to pull the trigger? For example, in the 2nd chart why not reverse at the 88.6 level? I've used this type of indicator for a long time but with supporting studies as I have not found any indicator that can consistently perform mechanically in a 'vacuum' by itself. It would make life easier if this were not the case and I'd like to learn how to do so if it is possible. Is your handle, MACD, a hint?
The second chart is displaying the AB=CD setup. MACD is just my ET name. The 88.6 level proved to be a "reversal point" as you stated -- please see the 3rd chart. Thanks, colion for your post. If you wish I will explain in more detail as you may not be clear on the AB=CD. Let me know by PM or post your email and I will send you a book which may be of clarifying.