Fibs don't work

Discussion in 'Technical Analysis' started by SunTrader, May 18, 2022.

  1. tuxedo69

    tuxedo69

    Follow on from my last post, i have looked at many many indicators when starting to trade but found for me at least that they were all lagging, i use Fibonacci pre agreed levels to give me entry levels to enter the trade (scale in) exit level and an agreed Fib level as a hard stop.
     
    #171     Sep 23, 2022
  2. maxinger

    maxinger

    It didn't and wouldn't work because Fibonachi was very lazy.

    He didn't spend thousands and thousands of hours analyzing charts.

    But fibo book publisher is having the last laugh !!!!

    Similarly there are lots of hopeless trading coaches in this modern days
     
    Last edited: Sep 23, 2022
    #172     Sep 23, 2022
  3. tuxedo69

    tuxedo69

    Max, your right regarding analysing charts part,but the fib levels i use are just levels (from the fibonacci sequence) levels to give me my strategy.as a counter trend trader i am just trading the ebbs and flow of the market. but my retracement levels are constant.
    One time frame, one pair.
     
    #173     Sep 23, 2022
  4. SunTrader

    SunTrader

    Another way fibs need to be used, as I have said previously properly, is understanding when they are applied to trend and corrective waves. Though this should be plainly obvious.

    Today's eMini 5minute chart. Trend is down a to b (duh!) and strong so don't expect much of a retrace and that is what happened. Tag of 38.2% and resumption of down trend to 2nd correction @ 3710-3705

    Meanwhile shocking b to c retrace of correction was completely ignored. "See I told ya they don't work". ;)
    !Fibs ES.png
     
    #174     Sep 23, 2022
    Illini Trader likes this.
  5. SunTrader

    SunTrader

    Was sleeping at the time (midnight to 2:00am ET) but another example of capturing a trend correctly with fib retracement tool. Not from the highest swing high but from where the breakdown actually started in earnest, down to lowest low:-
    !ES Trendwave.png
     
    #175     Sep 28, 2022
    tuxedo69 and Illini Trader like this.
  6. AND, you could have put several more red arrows on your chart as well.
     
    #176     Sep 28, 2022
  7. SunTrader

    SunTrader

    Yes I know, but first touches are all I ever concern myself with - less risk.
     
    #177     Sep 28, 2022
  8. 61.8% of the time, Fibs work every time.
     
    #178     Sep 28, 2022
  9. maxinger

    maxinger

    [​IMG]

    It definitely works on seashells.
     
    #179     Sep 28, 2022
  10. IF fibs work, then perhaps someone who uses them can post a real trade using them.

    Otherwise, this is just a bunch of hindsight BS. :D
     
    #180     Sep 29, 2022