Just curious - was this study performed by any of the same college professors who can prove TA has no validity/value? R
What matters to me is what I see for myself, not what someone who does a study can prove that I should be seeing.
I like the way you speak with absolute conviction. The reality is the only thing you know is that they don't work for you, because you don't know how to use them properly. I know of several who rank in the small percentage of highly successful traders that use them as one of their primary means of entering and / or exiting positions.
2 years ago I was a Fib scepticâ¦..but I kept seeing tests of key R&S levels that I couldnât fathom with my analysis tools. So over time I have seen their potential, back-tested the high reward zones/levels and have now added them to my trading plan as key reference points to be traded with/against. The ES is particularly structured in Fib terms. That is one of the reasons I have moved over from ER2 in the last two years. Imho the decline from last Wednesday was signposted by these levels â especially the last three days. Even the mini-4pm slide last night had a Fib Resistance level rationale in my mind on the ES. Ciao
How close does a retracement have to come to a fib level to be valid? 2, 3, 5 %? Even using coming within 3% as valid, using 23.6. 38.2, 50, 61.8 and 76.4 levels I think you have well over half the possible retracements possible covered. It is almost impossible for a retracements to not come fairly close to one of the levels.
As a newbie trader who struggled with indicators for two years I settled on Fibs for part of my analysis and always make money using them on 15 min levels. I used to trade 1 contract (futures) on the ES at first but moved to three after I was convinced (no longer fearful) of the results. Today I am long 3 contracts looking for 1506-1508 level. Lets see where it goes today and you guys can laugh at me later. Just my two. GT
Well I'm close now to the retracement I traded and dropping 2 contracts (selling) @ 1505 which is a nice profit for me so far--kinda nervous because I usually don't trade the Fibs (along with two other indicators) around Fed time so I think I'm going to sell the remaining soon --but I made some real ggod money for a small time trader today. White Castle and El-Producto cigars for me tonight !!!! Good trading to all --GT
I have been studying them for the last 6 months. I use them every day. The difficulty is they are subjective. They are good way to gauge the strength or weakness of a market.