to be honest, I have found 50% not to be reliable. The .618 is the most important number, and you need to combine it with a .382 within one point of the .618 and you will most certainly see a bounce. Enough traders look at this stuff. Also, concentrate on bigger swings and not like your example posted here yesterday. It is in my opinion that you will eventually get killed scalping for dimes and quarters.
I'm just a dimes and quarter kind of guy. 6+ handle trades come along each month. It takes 20 points a month to put food on my starving table and feed my bloated uncle (Sam). 50% is very strong for me. I don't owe fib anything, he is just doing a good job for me today and yesterday. By Friday maybe tick and trin will be my friends. If all I could do is get yesterdays trade 50 times a year...well it's a good thing I can't because I don't handle success or free time very well. I hope you're having fun with fibonacci because I know I sure am.
50% does work, Sarasota. Look at it as a cycle analysis. It works when there is a dominating cycle at the point in time. 50% does not mean it's 50% of price range, most of the time. For most market conditions, use time counts and look at angle resistance.
50% works if it's a 50% kind of market Chart Patterns work if it's a chart pattern market Gut instinct works if it's a gut instinct market I'm not that smart. It doesn't take much brains to see if and when something is working. If it's working, you trade it. Most of the time afterwards I find out that whatever I used would eventually wipe you out if that's all you ever used. Look up at the top of the page. See? It says Fun with Fibonacci. It is no fun to lose money so now I will share with you the only complex math I understand if m=f and n=-m then n cannot =m If money is fun and no fun does not make money then you cannot make money when you are not having fun Now really, you are not going to ask me how to have fun are you? That should come naturally.
Glad to see you are having fun with it. It does work despite what the frequent knuckleheads say on this site. Also, if 50% works for you, that is great. I suppose I don't have enough experience with it. But a word of advice, look at the different charts I posted on this thread and the other fib thread where you have a .618 and a .382 within a point of each other and calculated from a common swing high or low. You will see a pretty significant bounce in this area about 85% of the time. Good luck and good trading to you.
Mr. Gann, even though 90% of my trading is based upon your legendary market discoveries and remarkable trading track record, you are talking way above my head!!!!
Yeah, but it works unbelievably well. It's almost as if somebody said, "profitseer you idiot! Clear your head out and look at the market this way. Now does it make sense?" I especially like it because it is very intuitive. I'll check out those numbers and charts. There's something very beautiful about those numbers.
Some interesting articles ( Four Links Down - 14 free lessons) concerning trading with Fibs. and Gann thingies. http://www.fibonaccitrader.com/ The articles are free. The software is not. I have no comment on the software , nor is this post an invitation to try the software. Toby