Confused About Using Fibonacci Retracement & Extension

X

xBoba

Hi Everyone,

I have a few questions about the differences between using the Fibonacci Retracement and Fibonacci Extenison tool. I understand the definition and usage of the Fibonacci Retracement and the Finbonacci Extension tool--use the retracement to set entry points, and the extension for exit points.

But, why can't I use the retracement for both entry and exit points? Price is anticipated to hold at a fibonacci level (I enter here), but shouldn't price be expected to find resistance at the next higher fibonacci level (I exit here)?

My second question is: after making the initial entry, should Fibonacci Retracement and Fibonacci Extension be used at the same time to gauge possible pullback levels and support levels (in an uptrend)?
 
xBoba said:
Hi Everyone,

I have a few questions about the differences between using the Fibonacci Retracement and Fibonacci Extenison tool. I understand the definition and usage of the Fibonacci Retracement and the Finbonacci Extension tool--use the retracement to set entry points, and the extension for exit points.

But, why can't I use the retracement for both entry and exit points? Price is anticipated to hold at a fibonacci level (I enter here), but shouldn't price be expected to find resistance at the next higher fibonacci level (I exit here)?

My second question is: after making the initial entry, should Fibonacci Retracement and Fibonacci Extension be used at the same time to gauge possible pullback levels and support levels (in an uptrend)?
More...
%%
Mainly , XBob,because bull markets have NO resistance; bear markets have no support. Of course a bear could find support ....... in SPY from $150- $75 /+[about 50%/+] NOT a prediction
 
You can use them anyway you want. Best way to use anything is to test it in the markets you want to trade. You have to see how and even IF price reacts to different levels. I personally do not use Fib's but have studied Precter, Miner etc and it's interesting stuff.
 
xBoba said:
Hi Everyone,

I have a few questions about the differences between using the Fibonacci Retracement and Fibonacci Extenison tool. I understand the definition and usage of the Fibonacci Retracement and the Finbonacci Extension tool--use the retracement to set entry points, and the extension for exit points.

But, why can't I use the retracement for both entry and exit points? Price is anticipated to hold at a fibonacci level (I enter here), but shouldn't price be expected to find resistance at the next higher fibonacci level (I exit here)?

My second question is: after making the initial entry, should Fibonacci Retracement and Fibonacci Extension be used at the same time to gauge possible pullback levels and support levels (in an uptrend)?
More...

It's good to see that you are thinking. but


Have you considered that you are dealing with a flawed belief system supported by deluded charlatans and cranks? and that is why it does not work or make logical sense?

surf
 
marketsurfer said:
Have you considered that you are dealing with a flawed belief system supported by deluded charlatans and cranks? and that is why it does not work or make logical sense?

surf
More...

MS is back!
Typical response from MS who is so anti TA its got a bit old in the tooth these type responses.

I've been trading 40 + years so I'll give you something more constructive.
The majority of TA indicators don't work, well they do work, but only some of the time. If you trade using TA indicators alone you will go broke, that's a fact.
TA indicators are wishful thinking by the authors who see things after the fact.
However TA indicators can be useful in small ways if you use them 'differently', ie wish to measure speed of a move relative to other stocks for example, or measure volatility, these things can be useful.
But TA is not only 'indicators, its a historical study of price movement, you don't need indicators for this, just study price, like an aboriginal bush tracker.
In conclusion, don't get caught up with indicators, you will waste time. Study price, and for MSurf, TA does work if applied correctly, open your mind to other possibilities, if something doesn't work for you, try looking at it from a different angle
 
themickey said:
MS is back!
Typical response from MS who is so anti TA its got a bit old in the tooth these type responses.

I've been trading 40 + years so I'll give you something more constructive.
The majority of TA indicators don't work, well they do work, but only some of the time. If you trade using TA indicators alone you will go broke, that's a fact.
TA indicators are wishful thinking by the authors who see things after the fact.
However TA indicators can be useful in small ways if you use them 'differently', ie wish to measure speed of a move relative to other stocks for example, or measure volatility, these things can be useful.
But TA is not only 'indicators, its a historical study of price movement, you don't need indicators for this, just study price, like an aboriginal bush tracker.
In conclusion, don't get caught up with indicators, you will waste time. Study price, and for MSurf, TA does work if applied correctly, open your mind to other possibilities, if something doesn't work for you, try looking at it from a different angle
More...

I don't disagree. TA does have its place sometimes for specific applications. Seeing visuals, description of what happened, comparison of instruments
and gaining market context are all smart uses of TA

My comment above was specifically for the myth of Fibonacci. Fibonacci is so easily falsified, it's a joke.

Surf
 
I sent you a message privately. No need to post more here as it will not be of much real help to you and will just get more foolish and worthless replies.
 
xBoba said:
Hi Everyone,

I have a few questions about the differences between using the Fibonacci Retracement and Fibonacci Extenison tool. I understand the definition and usage of the Fibonacci Retracement and the Finbonacci Extension tool--use the retracement to set entry points, and the extension for exit points.

But, why can't I use the retracement for both entry and exit points? Price is anticipated to hold at a fibonacci level (I enter here), but shouldn't price be expected to find resistance at the next higher fibonacci level (I exit here)?

My second question is: after making the initial entry, should Fibonacci Retracement and Fibonacci Extension be used at the same time to gauge possible pullback levels and support levels (in an uptrend)?
More...

Beware of " private messages" on this site from anonymous posters. Ask why they wont post in public ? Generally designed to gain your trust to eventually sell you nonsense-- read this. https://www.lhup.edu/~dsimanek/pseudo/fibonacc.htm

surf
 
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