You know, when people lose sense and confidence in themself, they look for something, someone, anything for guidance. When it comes to reading charts, some people have to define things in whatever way they want to see it. Its a foolish trick they play with their minds - especially so when trying to "read the future. Its like going to get your palm read and taking whatever came of it and believing. People believe in what they want to believe in. And for many, they are dillusioned and misguided. They can't take what is happening right here, right now and making a decision based on that data. They need some spiritual, mathematical force. And thats where they've lost it.
Like any mechanical indicator, if Fibs provided an edge, wouldn't the Goldmans and Citadels of this world have arbed it to death by now? What's superior about a 61.8% retracement vs a 40%, 50%, 60% retracement target?
I'd expect more from you. You're making the same half assed assumption as half the idiots who presently dominate ET. Who says we're talking about retracements? And even on retracements what makes you think I merely use the fib sequence drawn off the h/l? Like everything else in life the easy, simple application rarely provides fruit. I'll tell you at least two MAJOR traders who use this work: Tudor and Dennis.
Does it work? Well honestly their can be different arguments of how it exists etc etc and how it does not and it is completely random... i am sure their are more angles to this. As for me, I use it among other things, I do not make trades just off the fibonacci, but they are important nonetheless. I use it for other things apart from studies lines etc. too. My arguments why it is necessary: 1) It is a mathematical formula, hence used by quants. 2) It does work once in a while. 3) People believe in it!!! (This is Important) 4) I dont know if this poll is even accurate for all I know the ones who answered no are consistent and profitable and better traders than the rest. 5) A sample of 50 votes is useless. 6) Even believing in the poll numbers approx 40% (of the current votes believe in it) 7) Beliefs influences Psychology/Emotions which influences Price and I trade price. 8) ET is a contrarian indicator 9) Going back to #6 and Using #3 & 4: If even 50% of the 40% are traders and believe in the study, have enough capital (every variable matters; you can define enough at your own convienience; and at the moment variable = people/traders/speculators/trades), I will definitely continue using this. 10) Is there anything else.... Ah yes (opposite of a similar saying) Myth becomes Belief which becomes psychology which becomes fact and if it grows it becomes religion (no disrespect to religions, i am talking in terms of the markets) Cheers!!!
Its the same with the anti-TA people. They huff and puff how all TA isn't consistent because they haven't been able to make money trading head and shoulder patterns
Non sequitur, boyo. In its most basic form, TA is strictly using market action as trade criteria. Nothing wrong with that. It is properly reactive rather than predictive. I think that those people who misapply TA in an effort to predict find themselves stumbling over their own shoelaces far more often than not. By its very nature, Fibs are ostensibly predictive. And I already gave my own opinion on market prediction in my first post. Stated differently, you post reaches farther than it grasps. Of course, that's just my opinion. P.S. As for your reference to head & shoulder patterns, they are essentially nothing more than either a higher low or a lower high. Basic TA. Nothing wrong with that. Of course, that's just the structure. It still requires strategy.
Fibs are another form of support / resistance. Just like any other S/R, some levels are stronger than others. In addition, there seems to be a tendency for fibs to be more utilized in some instruments than others. As another tool in the toolbox, they have their place. As a religion with fanatical followers - not so good. (T-dog: as an aside, poll wording could use some work) R