Fun with Fibbonacci Revisited

Discussion in 'Strategy Development' started by profitseer, Dec 6, 2002.

  1. The other "Fun with Fibbonacci" thread was too long and too long ago.

    So Friday 12/6 you had a move in es from 894 to 909 int the morning.

    So you draw a line from the most recent high or low on the chart to the lowest or highest trade.

    So the line is from 909 back to the low of 894.

    That makes the retracements
    909=0%
    905=23.6%
    903=38.2%
    900=61.8%
    894=100%

    So the idea is you peg each of those numbers as support for the bull move, and if 61.8 is broken the whole move is suspect.

    You can trade them anyway you like. Try to buy the retracements or sell them short when they are broken or who knows what all.

    My personal favorite is, "After order comes disorder."

    Be interesting to see what happens if 900 is retested soon.
     
  2. I am glad that Fibonacci is finally getting some respect here, but be careful because you are taking the risk of being advised to consult a shrink...

    No pal, Fibonacci is not about simplicity, you are so wrong, dude...:D
     
  3. That's the basic idea behind the 61.8% pullback within the first 30 min bar but in reverse, meaning that if the 61.8% level holds you get another strong shot in the original direction, the direction opposite to the pullback direction. Works like magic even if it occurs rather infrequently. On 12/3 it occured twice the same day, though. In November it occured 8 times. 5-6 pts each time, with 2.0-2.5 pt initial stop-losses. I am talking about ES.
     
  4. I had a couple of nice 61.8's and a .50 this morning. Darn, If only
    I had been watching...hehe
     
  5. Actually, it's not so much in reverse. What you said is basically another way of putting what I mentioned here a few times before but in the context of the first 30 min bar. This is very simple anyway, so perhaps that's why it's so hard to believe it. In fact, it's better to stop here before it gets complicated. :D
     
  6. breakout, That reminds me, they are also in my opinion better than n channels for breakouts. But what do I know? If the same guy is taking the other side of my breakout trades, I've probably put his kids through college.
     

  7. Oh yea, I wanted to thank you for that...hehe
     
  8. How come you get to post wisecracks on my thread and I can't post them on yours?

    No you got it backwards. They set the markets up to look like a flower petal. So, if A=B, and B=C, then A=C,

    That means if the math (A) describes the flower (B) and the flower is the same as the market (C) then the math describes the market.

    You don't really need the math though, just use the daisy method.

    I short it
    I short it not
    I short it
    I short it not

    For more information check out the article in The Econimics Journal titled "Using Random Methods for Selecting Daisies to Determine Fibbonacci Based Decision Making in Capital Markets."
     
  9. Damn!...two more 61.8's and a scratch .50. That's it, I'm going
    Fibb. He's the man!:D
     
  10. Tell me something I don't know yet. Two easy 4's today on Fib pullbacks. Don't talk so loud, the magic may stop working and what's even worse someone may start a thread 'Keeping Fibbonacci simple'. :D That has been my worst nightmare since the thread 'Keeping it simple' appeared on ET...:(
     
    #10     Dec 6, 2002