Fibonacci Fans!
- Thread starter easymon1
- Start date
I'm not a Fib trader but if I used it I'd use it in addition to S/R.
60 Min chart with Fibs + Weekly S/R level.
From my reviews of Fibs, I preferred retracements to the 50-61 area so here the weekly S/R level is within the 50-61 Zone.
***Swing trading method not daytrading.
Are there any trader making money using Fibs?
I mean, really, not just pretending or trying or I know a guy who know a guy?
I don't know, for me, it has always been esoteric.
Using a sequence of number, with certain properties, for forecasting where the price will go, really?
Nice chart by the way...
That's a purty little thing.
Would you mind identifying the overlay names that you used to create your chart, schizo?
LOL
This is what you end up with when you slap on a bunch of Fib drawings: a beautiful work of art to look at but a mess that's useless for trading. Just my 2-cents.
It doesn't even have to be that complicated though. Not a huge fan of fibs but I don't think they are necessarily as completely worthless as some people claim.
The fact is if you draw a fib from any clear low to a clear high, it still can provide risk management by using a close below / close above a level as an entry and a place to exit. Furthermore if you're using a FIB to short or go long, most strategies have you entering your short or long on the fib that is closer to the relative low or high, which again reduces risk within that move.
So, it could just be that fibs are giving some type of edge to traders in that regard, even though there may not necessarily be a direct edge saying "oh yes this Fib level is special". It could just happen to be correlating with a standard deviation or even just a pure you're buying near the relative low, with a stop below and looking to move back to the relative high. Therefore you have a 1 risk to 3 reward scenario or something of that nature.
This seems more difficult to explain via text that anticipated, but hopefully you get my point.