LOL always appreciate some praise thank you. Again I started out like most traders, blowing up an account or two. Knowing what NOT to do is key and I couldn't agree more with your comment about money management. Every system that I've found that makes money or trader who makes money uses risk management. Van Tharp's book "Trade your way to financial freedom" one of my favorite and his getting me to think in terms of R multiples was KEY to turning around my trading! There are THOUSANDS of ways to profitable and successfully trade using all sorts of tools, methods or combinations of indicators but without the above risk and money management most systems will eventually blow up. Thanks again.
Yes, I agree each one uses the tools that work best for him/her. Just to clarify, + I did not claim fibs dont work. I said big size fx traders do not rely on them. Feel happy to name a big house that uses them as their main trading tool, as you claimed, and I am happy to PM you with the names of the traders at that desk and will happily refute your claim. + Just wondering, why do you think they work? Maybe you dont care to convince others why they work but if you do in the slightest, I wonder....there is no logical reason why the market as deep as foreign exchange should care the slightest about some fib level, especially knowing that the depp pockets dont look much at them when they place prop positions.
Well if people use or don't use Fibs I don't care. There are soo many examples of them in action I could spend 24 hours a day for 15 years compiling them all. But here's a nice one. AUDJPY. Notice the market finds support and bounces (30-130 pips) off of EACH AND EVERY level. I typically buy the 50% and 62% fib and avoid the 38% unless the trend strengh was extreme and previous swing made a higher high. Yes I'm a short term trader and maybe some don't use these for longer term trades longer than 30 minutes to 4-8 hours but on MY TIME FRAME there is no denying they work and make money day after day. I'm done with this fib's don't work argument. Don't use them. I am not going to break confidences I have with some friends at banks because they all signed confidentiality / non disclosure agreements on the systems and methods they use. You should know that if you have friends in the business. I would never break there confidences to prove a point I could care less if you agree with me or not in the first place! Don't use fibs! Perfectly ok with me.
Another example and one that IMPLIES the biggest hedge funds in the world DO indeed use Fibs like I know and have told this group. Do your OWN research and when you see time after time the market stall and reverse at Fib retracements and targets, most times to within 2 to 10 pips you will BELIEVE too.
Busy today working on coding and fixing logic in an automated system I'm working on so I can get more sleep so not going to trade tonight and thus no need to do levels, sorry.
I draw my own lines based on previous price action, six sigma statistics, and momentum using my own methods and it has nothing to do with fibs, and many of those lines coincide with fib lines. It's like magic, I don't know why either, but perhaps human behavior has a preset limit on greed and fear...and that manifests itself to these levels.
Do you mean "Market Delta" ? I believe this concept only works with futures/stocks...products for which volume is available. Regarding Trade Guider, I wouldn't call the program a scam. VSA itself requires some bars for confirmation, depending on the setup, so the software in that respect isn't worse than the methodology its is based on. However, it is foolish to think that sth. like VSA can be put into code like a MACD or stochastics since it is a discretionary method. Therefore, the software is just not necessary as it is still the trader in the end who has to judge the market and apply the right VSA setups to the right scenario.
I must say what I know that a lot of people are thinking....but,....this thread looks like an infomercial for Top Gun Software, and a clever one at that.
the tradeguider VSA program is just way too pricey for me - - any candlestick identifying program (Amibroker) could be modified to make tradeguider-like notation if you invested the time and energy TopGun only provides basic access to the indicators, etc. through scripting, so I will probably postpone investing in it for now.
Fibonacci trading doesn't work. Fib levels are not more significant than any other level. Studies such as the following: "Our conclusion must be that there is no significant difference between the frequencies with which price and time ratios occur in cycles in the Dow Jones Industrial Average, and frequencies which we would expect to occur at random in such a time series. In our introduction, we noted that empirical evidence from academic studies suggests that not all of technical analysis can be dismissed prima facie. The evidence from this paper suggests that the idea that round fractions and Fibonacci ratios occur in the Dow can be dismissed." http://www.cass.city.ac.uk/media/stories/resources/Magic_Numbers_in_the_Dow.pdf Lets see - major institutional study showing no value to Fibs over a long timer period, or Amy Anonyposter who swears by them... Hmm, which to choose? And uses 2 data points as "proof" something no statistics-knowledgeable person would ever dare claim... Sorry, the crack use is purely your own and labels you as BUZZZZZZZZZZ Fib-believer!.