Using the Dow for example. We failed to rally past the 50% retrace from the last big high to the recent low. SO, if the last low doesn't hold, do we get a Fib target for the next area down? IF so, what's the #? thx. robert fischer wrote a book, "fibonacci applications and strategies for traders." it was published by "wiley trader's advantage" you might find the answers to many of your questions there. regards
I made money with fibber nachi today. I'm not sure exactly how the deal worked. I set it up so where I said resistance was was 61.8%. Then I just traded any break below 0% as a support break. It worked like a charm. the settings on es were (approximate) 885.5=100% 884=61.8% (That's the one I picked as my resistance as I saw it on the chart or to be more accurate, I would have considered a move above 884 as a break in the downtrend.) 881=0% There was a fair amount of discretion involved, but that is what I used as my guideline. But when I go back and look at the chart, I can't figure out how come I didn't get stopped out today. Sometimes, how I think things are happening is different from how they really happened.
about 11:00 am I am convinced 859 is the number to key off based on volume (not the spike however) I fool and fool around with it trying every combination until 863 is trading and I can finally make that 50% and the 859 comes out at 0 I'll spare you the details but I'm afraid my 863 limit won't get filled so I chase and fill at 862.5 and walk at 59.75 for a cool 2.75 which is more than a full days work for me on one easy trade. This is getting spooky guys, because afterwards I look up and there at the peak of the chart is 864 at exactly 61.8 and that was not done by me. so settings were 867=100% 863=50% (this one was acting like a healthy 50% retracement so that is why I could plug it in) 859=0% this was the key number, very strong action there and looked like a good place for a retreat, but didn't want to try to break it.
Well I suppose you are right, but you are missing the point. Even the non-fib believers like you should recognize that enough traders do pay attention to these numbers, even if there isn't some hidden nature or rhythm to the markets that make fibs work. Oh and by the way, did you see that this is the 5th time I have put a screen capture of fibs up? Did you also notice that 4 of the 5 were done in real time, and all worked beautifully? Probably not. Why do I even bother? I have absolutely nothing to gain and risk ridicule if the real time trade does not work out. The above post is what is wrong with this freaking board and takes all of the fun out of helping others. Even though I have posted numerous great real time examples, jackasses will bad mouth it all day long.