How to Draw Fibonacci Circles?

Yep Murray but as we know this is not a one size fits all business. We each have to find what works for us.

 

I think there quite cool, good explanation here.....https://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:fibonacci_arcs

 

I wouldn't think of Fib that way, but rather one type of correlation trade. To validate the worth of Fibs, just check the charts. The "Fib retracements" don't always hit on the ratio, but one should consider the zone from "a bit less than 50% to a bit more than 62%". "Counter" reversals occur there often enough that all technical traders should be keeping an eye.

Years ago I remember a TA software program... called "59 something (?)". Its play was to monitor 9 TA params and when 5 of them occurred together, that was a signal. "Fib retracement" was one of the 9. Had some merit.

 

Sorry I really didn't mean to discredit technical analysis. I've used almost everything. Some drawings do work. Many people think that drawings/studies are meritless, but they're based on quantitative data. I've never seen Fib Arcs used and if you think you're going to get them to work you have an uphill battle.

 

You forgot to add: Not a prediction.%

I actually agree with your past posts on 50 day and 200 day MA. Not a prediction, because I don't know why it should work.

 

If you're looking for Fib tools (basic and advanced), MotiveWave has a lot--basic extension, expansion, retracement, arcs, half arcs, circles, fans, grids, time and price ratios, etc. We're not just Fibonacci software, but we have all of that. Here's information on our Fib tools (as well as the option to take a 14 day free trial): http://www.motivewave.com/fibonacci.htm

 

Can be alright for framing a trade though, building an idea etc. Pretty good back testing and so on

 

%%
Like Trader Speedo noted, one size does not fit all.
I do use those circles a lot; which ones?? 200dma, circles+ % circles,

 

Fib Arcs are not Fib Circles.

But neither work correctly if chart cannot be set to fixed scaling.

 

As traders, we are in the business of finding turning points on the chart (if one does not use a chart, in the prices), the price turns when there are more people using their money to bet a certain point is the turning point. If the majority of them use some drawing tools, with big money, smaller traders better follow those and understand how it is being drew.

I would say too complicated drawing does not help much because you probably cannot find many fellow big money traders using them. But simple things like trend lines, support and resistance lines, obvious fib number lines, will help.

The art is to decide what time frame chart you do those drawing, too miniature, useless and many are simply noise.