Let's suppose that each day you start with the high and low of the day before. That is how I would do it if I were going to day trade using fibs. If today is rallying above yesterday's high, then I will just drag that high fib anchor higher with the market, keeping the low anchor yesterday's low. If today is declining below yesterday's low, then I would keep dragging that low fib anchor lower with the market, keeping the high anchor at yesterday's high. Then, I wouldn't look at these fib levels as precisely struck price levels. Instead, I'd treat the whole price area between the 38.2 and the 61.8 as a zone of potential fib support or fib resistance. If you are trying to use fibs as exact scientific levels, you will be disappointed in fibs. Use them instead as a zone, and you will love them. If, that is, you learn to use price candles to time your entries. Therefore, I would then pick the longest duration candle I could that allowed me to be comfortable with using the low as my stop loss for longs, or the high as my stop loss for shorts. Then I'd wait for price to trade into that fib zone. If today's high is above yesterday's high, then maybe I'm just looking for a long. If I am using a 30-minute candle, I want to wait for price to have a pullback from whatever its highest high of the past two days and into the fib zone. Once a 30-minute candle closed having traded into that fib zone, I'd look to buy using a stop order if and only if price traded above the high of that now closed 30-minute candle. What if price falls below the low of the fib zone? Then move your low fgib anchor to the next daily low. Wait for the 30-minute candle that contains the low of the pullback to close. Place a buy stop above its high. Your target could be a fixed set of points or a fib level of the pullback, or a test of the high of day or you can trail a stop. But the basic approach should be start each day using the high and low of the day before as your anchors. Look for a pullback into the fib zone. If price break the high or low of the day before without a pullback to the fibzone, then just drag that anchor with the market. Keep th other anchor at the high or low of the day before. Don't expect exactness. That isn't how the world works. Use the largest bar interval you can use and still be comfortable with the risk. No smaller than 5 minutes, and for day trading, probably no larger than 30 minutes. Over 30 minutes and you are better off working multi day swings. Last thing is you reference Globex. If you are trading stock index futures, pick either Globex chart or the regular day chart. You don't need both. I would probably gravitate to the regular day chart myself. But whichever you trade, trade it. Don't look at the other. You will just find yourself the same place we started with you today with two starting points and three combinations and six whatevers. Pick a candle interval, pick Globex or regular, start with the high and low of the day before, treat the fib levels as a zone not precision price points.
Fibs first: SPX retraced into the 61.8% to 78.6% pocket. ✔ + Price Action: Wait for a new candle to take out the low of a previous candle to get short. ✔ Fibs work ✔ And just in case, how about a stop loss above the high? People make this trading stuff way more complicated than it has to be.
I haven't read Zuckerman's book i was going to order it but read the reviews, which didn't, sound anything was gained from the book, i was interested in your post about a must read for Fib traders, I am a Fib trader, and do also believe in pattern Recognition.
Why the hell would fibs work? Do you guys beleive in some magical mystical order of the universe through numbers? Do these numbers override the chaos of millions of humans and machines who have different belief systems competing against each other? Do fibs work because of some universal intelligence working in the background? When waves crash on the beach, can they be calculated using fibs? I think not, I think fibs are baloney, like it's random and like kids, they can see jesus face in the clouds.
Fibs wouldn't work simply because it is not Selleys. If it is Selleys, it works. https://youtube.com/shorts/CzY-ZzeM2wI?feature=share Use Selleys and don't use Fibs.
Exactly, support, resistance, 200 day moving averages etc, trendlines, Fibs, ATH's, they all have a reaction from indoctrinated traders. Even breakouts which happen due to any of the above, the breakout is then accentuated by others who react purely on the (to them a meaningless) breakout. Systems and algos are also programmed to react. That's another reason penny stock pumpers succeed, because they create artificial signals which like a fishing lure can create a bite. What for example does a 200 day moving average (40 weeks) signify? Nothing, 200 days means jack shit, but someone thought that 200MA is significant, they spread the word (most bs artists have charisma), then it became prophetic gospel. Never mind that it's steeped in BS, when the crowd create a throng, then more and more believers join the mob of sheep in the paddock. When you think about it, trading is a musical chairs game where one mug buys and sells to another mug. Last mug standing becomes the bagholder. That's all trading is, a suckers game, where the worst suckers pay the bill to the more clever suckers.