[fibonacci] Anyone Trade FIBONACCI ?

[TheNegotiator 13]

Most traders lose most of the time ... why align your thinking with the majority?

 

Fibonacci tools are meant to be aplied to swings, not bars. That is, fib's need to be struck from swing lows and swing highs, not from random levels defined by a discreet unit of time, range, number of tick, etc.

 

Best Wishes,

 

Thales

 

I think there is an important point here. I WANT to align myself with the majority but not necessarily trade as they do. Knowing what most people are thinking and doing is the absolute key to making money.

 

As far as the idea about fibonacci tools being meant to be applied to swings, well I do understand what you are saying and where that has come from. However, people innovate all the time and things change. I see the 'golden ratio' within trading every single day.

 

A great rule in trading is that if something works, it doesn't matter what you are meant to do. Learn it, trade it, profit from it.

Edited March 6, 2011 by TheNegotiator

[maxblaser 10]

its like a tape measure you can measure the percent of a swing , you can even use say 25,50,75,100,125,150,175, and call american fibbys

[Richie Forex 10]

Fibonacci retracement levels have been around for quite some time, but accurate are they? Do you think they are valid levels because they simply work from a mathematical standpoint or are they accurate because the vast amount of traders that base their trades as well as analysis on them?

[SunTrader 10]

Fibonacci retracement levels have been around for quite some time, but accurate are they? Do you think they are valid levels because they simply work from a mathematical standpoint or are they accurate because the vast amount of traders that base their trades as well as analysis on them?

Neither. They are accurate, some of the time, when other factors are in sync.

 

Such as time and cycles (both price and time) , OB or OS conditions, momentum and patterns.

[Patuca 13]

I don't use them however that said the 50% retracement does have some merit but of course it is not a fib.