Fibs don't work

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

  1. SunTrader

    SunTrader

    Never average anything. All in, scale out mostly.
     
    #231     Oct 10, 2022
    murray t turtle likes this.
  2. tuxedo69

    tuxedo69

    Probably wrong using average,i meant scale in to the position as part of the strategy.
     
    #232     Oct 10, 2022
  3. SunTrader

    SunTrader

    Nope, scale out only.

    Entry either is good or it is not.
     
    #233     Oct 10, 2022
    murray t turtle likes this.
  4. tuxedo69

    tuxedo69

    As i cant precisely pick tops or bottoms,( who can) so my strategy is to scale into a trade at fib levels with a hard stop and TP.

    Obviously opposite to you.

    But we both make money,who cares.
     
    #234     Oct 14, 2022
  5. SunTrader

    SunTrader

    ! ES gap fill.png
     
    #235     Oct 26, 2022
  6. NoahA

    NoahA

    This is so stupid. If you draw the extension from the 0930 open to the high at 3870, you can't be taking credit for the little blue circles you have at 50% 61.8 and 78.6%. At those times, you had no idea where the high was going to be.

    In fact, if you draw your first extension from the low to the yellow line at about 3852, you see that price retraced practically 90%, blowing through all the levels.

    If this is how you guys use fibs, I don't see how you make any money. Show me a chart in real time. The way you have it drawn, you, extensions only apply after the last swing point because that is when you can do something about it.

    This is why in my platform, there is the option to only draw the retracements after the last point like here. The 38.2 clearly did nothing, as did the 50%. Maybe the 61.8 is causing a bounce, but I'd say mostly because of VWAP. But as you can see, I'm not going backwards with the fib extensions as they only extend forward.

    2022-10-26 1012.49.png
     
    #236     Oct 26, 2022
    murray t turtle likes this.
  7. SunTrader

    SunTrader

    Its called looking for a gap fill dummy - prior 400pm RTH close to today's RTH low. Fibs can be drawn from anywhere ... at least on real trading platforms.
     
    #237     Oct 26, 2022
  8. I believe his 100% is on the previous day close. Which means he drew from yesterday’s close to the low of the few first bars (you can also see the angle of the dotted line). Then probably took trades on the blue circles as price met there.
     
    #238     Oct 26, 2022
  9. SunTrader

    SunTrader

    Correct - retrace the gap - but first touch only.

    61.8% took some heat since it only contained close of bar.
     
    #239     Oct 26, 2022
    FibonacciNinja likes this.
  10. %%
    Entry can be good, very good, excellent, as far as profits go; or cut a loss.
    Nice small sample chart in hindsight .
    I have used those 1 min some times but not much;
    i like 2 day set up + 1 min= too much noise for 2 days.
    I could say something negative on 38%,also, but then it may work better, so each to his or her own:D:D
     
    #240     Oct 26, 2022