Why? Fibs definitely work and I've made a ton of money from them. But I do agree with the concept that IF a tool does NOT work for YOU then don't use it! Not everybody knows how to draw fibs correctly or setup Fib clusters along with other support/resistance levels. As you go back and review my predictions the night before, MOST of my levels are Fibonacci based! You've all seen they work or at least I know how to use them correctly! No denying that. It is more of an art than a science but I'm a very visual person and can always spot the right swing level to use that is most likely to give me REAL support/resistance area. My advice is USE TOOLS that make you money. Fibs make me probably 1/3 of my profits so I'll continue using them. Fibs more than paid off my mortgage so I'm obviously in LOVE with Fibs!
I know some traders who work at banks. They have told me they ALL use fibs. If the world's biggest traders are using them then you can be SURE I am looking at them also. Not doing so in my opinion is rediculously stupid. They DO use them both for finding areas to get INTO trades and they also use Fib targets as places to scale OUT of trades. Don't believe me, try to get a job interview at a trading house and walk through and talk to their traders. Two years ago I was in a trading house in NY and spoke to a few of their traders, THEY USE FIBS and some of them as their MAIN indicator. Fibs don't work? hahahaha that's the CRAZIEST thing I've ever yeard! Just because ONE trader loses money with them doesn't mean they don't work. I'll give my Fib secrets if that trader wants to turn his trading around.
Here's a trade I called out yesterday and took today. Hit 50% FIBONACCI level and fell over 100 pips. I only caught 43 pips as I tend to quit trading around noon but still something that happens ALMOST DAILY and makes smart Fibonacci based traders money! Notice the 1.382 Fib Target level was right there at the 50% fib retracement level. I took DiNapoli's course on fibs and its the best and use it. I also took TopGun's course and they teach the same methods DiNapoli uses as well so I learned this from two sources. Their trading zones show up in red on chart which they did which were pretty close to the levels I came up with myself. Gives me more confidence in taking the trades. But to say Fibs don't work? Come on, every trader I know who makes a living trading uses Fibs! Stop smoking crack and use your fibs!
As predicted yesterday I felt EURGBP most likely to go up today. It had the strongest composite score with 58% chance of going up and I predicted a 60% chance of going up. I only buy breakouts or pullbacks when a currency I think is going up IS going up and is ABOVE the hourly moving avg (gray line). It was confirmed with the Power Index showing over 80% of the currencies support a buy and FX Multimap with 20 reading. 20 is the minimum I'll buy on, 30 to 40 strength is better. It was my second biggest win today after my GBP/USD short which I predicted was going to go down yesterday and it did. Real time tools showed it was the weakest so I doubled my position size in that one. I had normal size on this trade.
GBP/USD was my second best choice looking for shorts. I was wrong about USD/CHF and knew it based on it being above the hourly moving average so I waited for my fib level to sell it. This one I was right as it was UNDER the hourly MA and you can see at 3am the GBP is going down against 100% of pairs and USD going up against 100% of pairs, thus a 100% red reading. I doubled up and shorted the first pullback and made about 160 pips on double sized lots. I only double my position IF I was right about the direction and REAL TIME tools show me the pair is REALLY likely to go the direction I anticipated the night before. It only takes ONE nice trade like this to be a HAPPY trader. If you look back at Sunday's post I told you a few hours before to look to sell 1.4172 area. It only moved a few pips beyond this point before it FELL. I was watching tv last night and didn't take that trade but did take the real time signal my vb script alerted me to at 3:30 am.
The 160 pips I made from this trade and my prediction BEFORE this level got hit tends to prove your comment as 100% false. Stop smoking crack and use the fibs!
Buys EUR/GBP Buy .9083 to .9071 EUR/CAD Buy 1.6341 USD/CAD Lightly buy 1.2916 to 1.2900, aggressively at 1.2881 EUR/JPY Tough one could go up or down. Buy today's high breakout, short breakdown of low USD/JPY Sell under 98.50 until 98 then buy from 98 till 97.87. Buy breakout of todays high Sells EUR/USD Sell 1.2700 and 1.2728 USD/CHF Lightly sell 1.1650 to 1.1663, Sell 1.1700 AUD/JPY Sell 63.43 to 63.50 and 63.87 to 64.00 CAD/JPY Sell 77.21 GBP/CAD Sell 1.8100 to 1.8153 AUD/USD Sell .6350 to .6364 and .6400 GBP/JPY Sell 138.12 to 138.50 GBP/USD AGGRESSIVELY sell 1.3862 to 1.4015 area NZD/JPY Carefully sell 49.41 to 49.50 NZD/USD Sell .4975 to .5025
whoa did you say your VB Script alert? you are using VB Script? I love VB Script! How are you scripting alerts? via charting tools? spreadsheet(s)? I have some ideas that may be worthwhile - - maybe we could collaborate. P.S. wish I had found you sooner, I think it is great what you are elucidating in the forums here...