The real problem squall, is that they don't have a tendency to work at all. I went over a very good study of Fib levels done bgy others years ago, and the fact is they don't work. in any way. at all. They are no better than any other level. People keep believing in them and other things, but they have no basis or reason for this. They just figure they must work because others say they do. They figure they become a self-fulfilling prophecy, but they don't, in actuality.
Like I said I use them everyday and like them. Honestly, objectively, there is subjectivity in where to draw them. Sure, a swing hi or lo, but which one, there are many on 10 min chart? That's what taken me 6 months of study and practice to get decent at. Agreed it's no different than any other TA, take basic S/R. I know 4 valid ways to draw S/R, excluding fib, which all work at one time or another.
Fair enough, I see your point. I just use them as a form of s/r and if it starts burying me, then I will re-evaluate.
many people say support resistance numbers don't work. Yet the fed says they do "work" in the currency markets. Before you can say they do not work you would have to do at least as through investigation as the fed did.
Yeah you're right, if they don't work, then it must be a HUGE coincidene, because it's almost uncanny how often price will keep bouncing off the same levels if you look at a chart.
Yeah I figure as long as I see price reacting to the levels for whatever reason...I am gonna react as well.....
For those who claim, "Fibs don't work"... I suggest you are trying to apply them too broadly. There are some chart "situations"* where Fibs work very well. If you restrict your usage to those, you'll be very pleased. * I COULD tell what some of those are, but I'm not. If you put on your thinking cap, you can find some..
Reminds me of the Howard Borden classic comment... when asked, "How DID you ever get to be a navigator, Howard?", and he replied, "Oh no you don't, you'll have to go flight school just like I did".... I remind you of a famous Mr. Spock quote... "When all other possibilities have been eliminated, whatever remains (however implausible it seems) MUST be the truth"... trading is like that.