Today's Trades. There weren't many places today where price actually retraced to one of the fib lines, but I finally got a small retrace so I entered. The problem with doing these narrow-range trades like this is that the fib lines often don't match actual prices where you can buy. You can see the red fib line is at like 1133.33, but obviously you can't buy the ES there. So in most cases, when this happens, I put the buy order under the line at the closest valid price (to get a little better price than if I put it above the line). That's why the green arrows (buys) don't line up exactly with the fib lines. Shortly after closing out this trade, I got disconnected from OEC for a few moments. It instantly reconnected, but I was hesitant to take any more trades for the rest of the day.
http://www.dailyfx.com/story/strate...Post_of_the_Day__Fibonacci_1236246116947.html I did not take this trade, but I think its a useful way of studying fibs. I don't use fibs for stock trading. I rather use other indicators like strong insider buying, low float, and some type of event in the future either a court verdict, phase III results, good earnings, or etc.
Yes PaperTraderZones, some newbs like to learn from examples. What was the last post that you wrote that helped anyone in their trading?.. You do a whole lot of finger pointing, flaming, and trying to find flaws in others. kon
this is a simple way to know if you are curious about fibs; take any chart and draw fibs on the First Wave and lets label the low as point A and the high as point B. now you will notice that prices will retrace below point B to the 61.8 fib level and when advancing beyond point B they will hit the -.618 level. price will hit these two fib levels more often than not. the only way to know is to experience it yourself and dont take anyone's word for it; so test this out by drawing fib lines for a few times on any chart and experience it yourself. thats how you know ahead of time in order to place your trades. here is an example chart of bidu showing this in action http://www.sierrachart.com/userimages/upload_2/1267847433_4_UploadImage.png the magic is not in fibs; the magic is in noticing things you never noticed before
hey OP...here is the main issue with fibs that has not been brought up...the key is knowing the best place to start drawing from what high to what low...or in reverse from what low to what high?...seriously...how many periods or days back do you go?
check out my earlier post with the bidu chart with fibs drawn on the first wave; if you are a scalper thats all the fibs you will ever need using it on intra days waves
poor baby. sorry to make you weep there there, you can have hope. if fibs make you feel better, than go ahead and believe in them. And Santa is real too...