As traders, we look at Fibonacci retracement levels to predict whether the market might resume its previous rise or fall. However, have you ever considered the application of Fibonacci retracement using only 2 candles? The First Reversal bar acts as a newly established trend phase. The Second bar mimics a short-term retracement of prices on a larger scale before resuming the main trend. When the price in the second bar initially moves in the opposite direction of the first bar, it resembles a retracement—a temporary reversal in price—often observed in larger price trends. After moving in the opposite direction, the price in the second bar returns to the same direction as its preceding bar and closes in the same state. This behavior is akin to the market resuming its prior trend following a retracement within the broader market context. A reversal signal appears, indicating an opportune time to enter a position, when the retracement within the second bar reaches a certain Fibonacci retracement level. This approach mirrors how we commonly utilize Fibonacci retracement levels to identify potential entry points for trades. This concept of Fibonacci retracement using only 2 candles is a new approach to identifying reversal signals for scalping.
Your “new approach” of using Fibonacci retracement on only 2 candles is logically flawed. First of all, it begs the question whether a candle really represent the market? No, it doesn’t. The market is just buyers/ sellers getting together to agree upon a price, so a tick chart would be the best representation. Each tick represents a buyer/seller agreeing on a price, which we as traders organize by time and arbitrarily group the ticks in our preferred time period on a chart. Therefore, with your 2-candles concept, you’re arbitrarily grouping a bunch of ticks into an arbitrarily time widow, while disregarding any concept of how the market works, and how Fibonacci should be used. Fibs should be drawn between proper swing points which were caused by supply/demand imbalance), and not drawn in a no-man’s-land by some useless indicator. You’re asking US$246 for your logically flawed indicator, and I reckon that our forum members would be much better off by spending the money on a beer then on your indicator.
Not flawed at all. Markets are both price and time. Guess you never heard of use of Fib Time Retracements/Projections? As for two bars, I sometimes use it on even 1. A daily candle that is.
As an aside, it's a funky coincidence that the first chart there that you posted this morning at 5:30 AMish happens to look pretty much exactly like the NDX as of now, starting from the swing high... Has nothing to do with anything related to your indicator, just something noticeable. So, I noted it, heh.
Momentum is a funny one (as in fucked up) should it either be present.., lacking.., or somewhere in between - is the very thing that evokes all sorts of emotions in traders LOL RN
%% NO, not like that; even though much bigger candles like monthly may help[Not for scalping LOL off monthly] Thanks for the question