That link just explains fib numbers and has one bullet point about how some people say it indicates resistance points in the market but it's disputed. It doesn't explain how or why or where the correlation from [unrelated mathmatical property] to [financial market application] comes from, which I believe is what he was asking.
I was referring to your 78.6% fib line. Wow, I had some numbers dyslexia on that one :eek: My bad on that one. So you bought at the 61.8% fib line. I bought there, and 50, and 38.2%, so my cost basis was lower than yours and I got more profit when price retraced back up to 100%. konviction, how do you determine your stop losses when trading fibs?
Here is the only post I could find that tries to explain why fibs are applicable to the financial markets. If you read it in its entirety, however, you will see that there is no explanation other than "it only makes sense that since nature follows specific laws the same laws should be appliacble to price movements." If you're at all rational, you will see that makes no sense and is neither logically supported nor relevant at all, but that is the kind of mumbo jumbo that "fib gurus" spout. The first section is all correct. The last paragraph is where the lol begins (where he tries to apply it to financial markets). That poster goes on to get flamed in that thread for his explanation. The post is the attachment. The thread is here: Link
1a2b3cppp, I am interested in your Fibonacci Trading Course and would like to subscribe to your newsletter. lol
Because you're taking something that is definitely outside the realm of financial markets and trying to apply it to the financial markets. It's exactly as illogical as applying something like the progression of Tennis Scores, which are definitely outside the realm of financial markets, (0 (love), 15, 30, 40) and trying to apply that to the financial markets. Or taking a progression of prime numbers, which are definitely outside the realm of financial markets, and trying to apply that to the financial markets. Or taking [anything] that is outside the realm of the financial markets and trying to apply it to the financial markets. Is the fibonacci sequence a "real thing?" Yes, absolutely. That wiki article explains it. But is completely outside the realm of trading and that is why it makes as much sense to apply it to trading as it does to apply Tennis scores or prime numbers or anything else. I'm not sure how else I can explain it. I mean think about it. You're saying that a ratio of numbers (that may or may not even be found in nature) are somehow appliacble to psychology. That's a collosal stretch. Ratio of things in nature != psychology. That's as absurd as saying the number of pellets in a bag of dog food can predict basketball scores. A large enough group of people = noob traders. Although I cannot confirm it, I seriously doubt that hedge fund managers or pro traders use fibs. Now you're comparing entirely unrelated things. Pointing out one illogical behavior does not prove another. You're trying to say that "people buy homes they can't afford. That is illogical. Therefore, fibonaccis must also work because that is also illogical." You'd fail Intro to Logic 101 with that argument. I can tell you're trying to emotionally rationalize rather than logically rationalize, which at least suggests that you are passionate about trading, and that's a good thing. But emotional traders lose money and emotional arguers lose arguments. Read this page and see if you can identify the fallacy in your argument. Hint: I just described it in the previous section. http://en.wikipedia.org/wiki/List_of_fallacies Yes, but it's not relevant to what you're talking about.
Newsletters are for scam artists trying to build a list of names. They disguise it as a "newsletter" which they use to send out shitty "advice" each week and sometimes cross-promote other scam artists' shitty products. Fuck that shit. Just subscribe to this thread
Do you look for specific relations between the position of the swing low and the fib lines? In other words, what if the swing low is 50 points away from the lines, vs, 10 points away. Would that make any difference to you?
It doesn't matter how many points really, its a matter of % risk in the account that I'm taking.. 1pt, 3.5, 4pts...doesn't matter, my risk never changes. ---- Obviously it's not outside the realm of trading if hundreds of thousands of people use it, now is it? It's like saying "OH cigarettes are completely outside the realm of lung cancer"... which is indisputable, as smoking is the #1 leading cause. I'm not emotional in my trading, but yes I am passionate about it, there is a difference.