Fib numbers are just cognitive reference numbers. It's a result of human bias. It might be better to build a system with integers like 1.0000 in USDCHF, 1.25000 in EURUSD, 1.50000 in GBPUSD, which often form resistance levels and prices often reverse once they cross these points but that rarely happens but this is a result of human bias too.
You're wrong about this. OP was the one who did not behave just because he did not agree/like some replies. He's the one who needs to grow up. But who cares, he will disappear in the near future from the derivative market anyway. He's no chance, especially with his childish attitude. Well, regardless of his attitude, he's got no chance.
No matter what you use, price in a liquid market will continue moving, so any model is bound to break sooner or later. Fib extensions is a tool that may be used to box in price, or filter prices. If other numbers works better (there usually are better numbers in backtests), I'd rather use that, but also work to find out why I need to "optimize", aka box in price, so and so.
On the subject of Fibonnaci, can I offer a link to a page of an interesting academic site in this thread without being accused of being a Trump supporter or hater https://www.lhup.edu/~dsimanek/pseudo/fibonacc.htm
Another doozy. Follow the crowd around BRN's big round numbers. Now why didn't I think of that .... 50 years before everyone else.
Just for reminder: The most common and reliable Fibonacci relationships can be found between alternate waves, rather than adjacent waves. For example, the lenght of Wave 3 in a five wave sequence would be influenced by the length of Wave 1, rather than by the length of Wave 2. In my practice, the Fib extension is kinda useless trading with EW principles. You never know how far the market will move. Only Fib retracement works and ONLY in five wave sequence(motive waves), it doesnt work on corrective waves because those are the waves which are kinda untradable.
The most reliable way to use fibs (rets, projs, exts) are together on waves 3, 5 AND 4. As well as drilling down from higher to lower timeframes.
Agree. "I'm particularly interested in seeing the world through the eyes of smart people who see things differently from me," Ray Dalio
jpvil123, Wave 3 typically peaks at a 1.618% extension of Wave 1 length, as measured from the bottom of Wave 2.