Lol.. my bad then. I have seen others do exactly what I mentioned, so automatically assumed it was this since it lined up perfectly. But yes, it makes sense now.
We all use Fibs in different way to make money/profit /% per month, and from my own view watching the charts for years fibs can be used in may way retrace / extensions / counter trend so many ways to skin a rabbit ,they ,,the strategies all work if the edge is good ,and you are disciplined. There is No right or wrong in using fibs in there strategy if they make money.
That book by Zuckerman -- quoted above -- is a Must Read for traders who understand Fibonacci Patterns as well as Fractal application. The Crux of: all discussions of Fibs and the Value of Pattern Recognition (properly applied) is a subject frequently addressed on ET. Do patterns Repeat and can the trader benefit consistently as a result. Markets as a "Random Walk" vs. Tradable Repeating Patterns. Much MIT Papers have been written on this by Dr. Andrew Lo and others. My opinion from years of study and trading. Fibs and Patterns work; thanks to those who do not use or believe in Pattern Recognition but understand "the zero sum game" -- keep disbelieving. BTW: Thanks to @easymon1 for his continued expertise in providing Thought and Discussion provoking threads.
And the countdown begins to someone posting "That may have worked for Simons years ago but the markets have changed." I 100% agree with you that patterns work. What prevents many from seeing that these patterns work is that they also see all the times the pattern "didn't work." I always say I am not a strict chartist. That doesn't mean I don't use charts. Take a simple "head and shoulders top" as an example. I don't sell because "the neckline broke." I sell when the neckline breaks, and then volume comes in, and rather than reverse and close back above the neckline, the selling continues. I use charts, but I trade markets. Patterns are my "get ready, get set" signal. The price action that follows is my "Go!" signal. Pro tip: When a pattern appears not to have worked, that is also a signal. A very reliable one, at that.
The problem I have with Fibs is that there are many different swing points to use. Sometimes you can use the overnight low to start draw from, or sometimes the low after the open. So now you have two ways to draw a low. Then you maybe see some obvious high 30 mins or 1 hour after open, so you start drawing. You might consider the 38%, or 50% or 68% fibs. So you have 3 combinations, but with 2 starting points, its now 6 different possible turning points. I like what Ram said about the "go" signal, but it then sounds like this go signal is most critical, and maybe you can even do this without the fibs. Simply seeing price dropping with volume might be enough to enter a short, even if it didn't hit some fib level. I do believe in overnight levels, previous day highs and lows, previous day close, that sort of thing, so that already provides plenty of levels.
Just my opinion, but that's a bs way of trading. All those gazillion lines, htf are you going to code that? Htf are you going to apply these to ongoing charts and time without a lot of work?