Since fibs are voodoo and you have no way of knowing if price is going to retrace to the 33, 50 or 66 line (or somewhere else completely random, since fibs are just as good as completely random lines, or somewhere else entirely, since price movement is random), I propose the following method of trading them: Draw your diagonal line to establish your 3 fib lines. Wait for price to retrace to 33 line. Buy. If price goes back up, you win. Wait for price to retrace to 50 line. Buy more. If price goes back up, you win. Wait for price to retrace to 66 line, buy even more. If price goes back up you win. Stop loss: if price retraces to the 0 line. Come on, don't be a dumb noob and hold your losers forever. This is a definite hard loss. Basically you're averaging down, buying at each fib line, and then hard stop lossing at the 0 line, and selling at the 100 line. (In before people bitch about averaging down). COME ON GUYS!!! PRICE RETRACES AT FIB LINES, doesn't it? Fucking books have been written about this shit trying to come up with explanations for "natural harmonics" and other such hocus pocus that makes no sense yet we can all draw the conclusion that ZOMG PRICE REVERSES AT FIB LINES. If price actually reverses at fib lines, then this method is the holy grail. If price even reverses at fib lines most of the time (come on, even natural harmonics of teh natures can't be right all the time), this method will still be profitable. If fibonacci lines in trading is a bunch of hocus pocus BS then this method won't work. This should be easy enough to backtest. Oh wait, no it won't, because even knowing when and where to draw fib lines isn't specific. I think they just draw them after the fact where it looks good in order to sell their books. Discuss. For bonus points, trade in another account in the opposite direction (you'll have to work out the position sizing yourself, I can't give everything away) and make money regardless of which direction price goes. (In before people who don't get it complain that trading in both directions at the same time is the same as being flat) This is the best and only legit thread about Fibonacci lines on this entire forum.