Its an old wives tale passed on to idiots who fall victim in believing it. Its just a mathematical sequence idiots! Everything passes through it by numerology. Those who take it more than what it is to describe all behaivior IS SMOKING CRACK. Its typical of losing traders who have lost their own self soul to look towards outside guidance, perhaps of mystical proportions, to be the solution to their problems. Its right up there with reading the moon and sun and tossing chicken bones across an OUIJI board. When you get to this point in trading where you are searching for magic or power in numbers, YOU HAVE LOST YOUR ABILITY TO THINK FOR YOURSELF AND TRADE. STOP TRADING AND DO SOMETHING ELSE.
thats kinda funny because ive been trading for income for many years and the only indicator i use is a macd. but hey, maybe i should look into doing something else like working at McDonalds huh... happy trading
Thomas jackson WTF, As i read through the post i have to wonder why you would be so bashing of ones opinion's. Maybe you have had a bad experience with fibs but that in no way makes you the final decision maker on the subject. Or maybe it does and i just don't know who you are. I am in agreement with minitimer as they do have a relevance throughout any chart on any time frame, even down to a 55 tick chart. You don't have to you the tool to give you a exact number to the tick, and then say it does not work it the price goes through it by one tick. It is a emotional range that happens over and over again. Is it that fibs don't work or that you dont know how to use them? Here is a chart that nails it perfectly to the .618. P.S you have to know which moves you can draw them from or you will be drawing them from a move that is not a TRUE move. If you draw them from a move that is not true then it will give you a NON true result. What do you prowl ET and find new posters to bash? TG
Oh wait , maybe that was a one time deal with that chart , was it? Follow the chart it is on every move. Get your facts straight before bashing someone. TG
In spite of "testimonies" which are obviously groundless in statsitics, Fibonacci trading doesn't work. Fib levels are no more significant than any other level. Studies have already shown this, for example: "Our conclusion must be that there is no significant difference between the frequencies with which price and time ratios occur in cycles in the Dow Jones Industrial Average, and frequencies which we would expect to occur at random in such a time series... The evidence from this paper suggests that the idea that round fractions and Fibonacci ratios occur in the Dow can be dismissed." http://www.cass.city.ac.uk/media/stories/resources/Magic_Numbers_in_the_Dow.pdf It is a hard thing, separating believers from their belief.
Fibonacci truly works. The researchers researched it the wrong way. They use a statistical approach, but don't take in account the randomness of market change. One day the market trends, another the market chops. Another day both chop and trend are present. This gets even more complicated with using multiple timeframes. You have to actually think, before you use Fibonacci, unlike blindly following MA crossovers. All in all, Fibonacci is greatly undervalued as a tool to make money with. Fibonacci is NOT trading the moon
I would tend to agree with the above. Been using Fibs since my old floor trader days in NYC. That having been said, I'm amazed that people here on ET would go on and on for 21 pages about whether Fibs work or not. Actually, cancel that thought. It's not surprising one bit . . . After all, this is ET, home of . . .
Of COURSE they took everything into acccount. What do you think it means to do a longterm study with real numbers in the market? But it is very convincing, that you declare longterm studies wrong because you know better. Take your dartboard and go home, little boy
I can bet you they didn't. Researchers aren't traders, or they would stop researching and be making money already . Researchers don't take in account psychology of the markets, as they believe markets are "efficient", whatever that means