Draw them from swing highs to lows and vice versa. Let me give you a clue that you should find helpful. When the market is pulling back you want to see it pullback on lower volume. Put a volume historgram in the lower section of your chart and verify it for yourself. If you get Tom Obrien's book Timing The Trade or Techniques of Tape Reading by Graifer and Schumacher you will see some good examples of pullbacks on low volume. Fib is related to Elliot Wave. After a confirmed reversal when the trend is strong, you will get a wave 2 pullback to approx. 38% on lower volume and then a break of the swing point on increasing volume. I use 38% and 62%. If it goes below 62% the move is weak and you don't want it. Read this thread, trust me, and print out the pdf photos and thank db phoenix for his wisdom.
http://www.elitetrader.com/vb/showth...6&pagenumber=2