Fibonacci Levels: How do you know when your wrong?

U

User50000

I have been watching fibonacci levels on intraday charts for a little while and I've noticed that while there are times when the market will stop and reverse after just printing a level, most often the market will push through the level (in some cases just a tick or two). My question is: How do you determine when the retracement level has *truly* been violated? I have read that some traders use the midpoint between two levels (say halfway between the .382 levels and the .500 levels) to determine when a level has been violated. This seems reasonable to me but I would appreciate any other insight you may have to offer.


Thanks!
Frontrunner
 
Quote from Frontrunner:

I have been watching fibonacci levels on intraday charts for a little while and I've noticed that while there are times when the market will stop and reverse after just printing a level, most often the market will push through the level (in some cases just a tick or two). My question is: How do you determine when the retracement level has *truly* been violated? I have read that some traders use the midpoint between two levels (say halfway between the .382 levels and the .500 levels) to determine when a level has been violated. This seems reasonable to me but I would appreciate any other insight you may have to offer.


Thanks!
Frontrunner
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Think it is subjective you have to take in the overall market as well as the FIB levels to get a real feel for when is a good time or not. Here is what I use. http://www.trade-ideas.com/Help.html#FU38


Good luck.
 
Quote from Frontrunner:
My question is: How do you determine when the retracement level has *truly* been violated?

Do you have a written trading plan? If so, then, what do YOUR rules tell you about the retracement level violations?

IMO intraday fibos are pretty much useless.
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It's mathematical voodoo nonsense. If the only faith you have in your trading ability is based on numerical sequence, then you've fallen into the camp of fools.

Then again, I only go long with Uranus lines up with the sun.
 
front runner. You have asked one of the eternal trading questions. I have yet to hear a good answer besides it depends on your risk reward parameters.
 
Quote from Frontrunner:

I have been watching fibonacci levels on intraday charts for a little while and I've noticed that while there are times when the market will stop and reverse after just printing a level, most often the market will push through the level (in some cases just a tick or two). My question is: How do you determine when the retracement level has *truly* been violated? I have read that some traders use the midpoint between two levels (say halfway between the .382 levels and the .500 levels) to determine when a level has been violated. This seems reasonable to me but I would appreciate any other insight you may have to offer.


Thanks!
Frontrunner
More...

Price should not fall 3 points below a fib level. If it does, you are wrong. Avoid trading the 50% fib level, and stick to .38, .62, 0, and 100.

Regards
oddi
 
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