are fib retracement lines "price action" or a "technical indicator"?
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Fib Ratracement lines (eminis) PA or TI
- Thread starter increasenow
- Start date
fib retracement are hardly a "waste of time". the problem comes when people think they are magick (tm).
they are simply frames of references.
at a minimum, they are watched by other traders, so to SOME extent become sort of a self-fulfilling prophecy.
they also help you define risk (and traders who don't define risk are gonna lose over time - period)
i would never enter a trade simply because a price retraced to a fib level. that's silly imo.
however, given a market i want to enter, i will look at fibs because i know they are likely to see supply/demand shifts (because other traders look at them), they help define risk, and they offer perspective
they are simply frames of references.
at a minimum, they are watched by other traders, so to SOME extent become sort of a self-fulfilling prophecy.
they also help you define risk (and traders who don't define risk are gonna lose over time - period)
i would never enter a trade simply because a price retraced to a fib level. that's silly imo.
however, given a market i want to enter, i will look at fibs because i know they are likely to see supply/demand shifts (because other traders look at them), they help define risk, and they offer perspective
Quote from whitster:
fib retracement are hardly a "waste of time". the problem comes when people think they are magick (tm).
they are simply frames of references.
at a minimum, they are watched by other traders, so to SOME extent become sort of a self-fulfilling prophecy.
they also help you define risk (and traders who don't define risk are gonna lose over time - period)
i would never enter a trade simply because a price retraced to a fib level. that's silly imo.
however, given a market i want to enter, i will look at fibs because i know they are likely to see supply/demand shifts (because other traders look at them), they help define risk, and they offer perspective
Great post.
I couldn't have said it better.