Fibonacci ratio query

[themickey]

For many years I'd disregarded Fibs believing they were nonsense.
Well lately I've noticed some strange price action behaviour which had me wondering if traders using Fibs were behind the moves and my initial suspicion seems to confirm it as these moves seem to coincide with Fib numbers, I've knocked up a spreadsheet and doing my own testing.

I was reading up in Investopedia about it and it explains how the ratios etc are contrived.
It appears the main ratios traders use are: 61.80% 38.20% 23.61%.
They also say 50% is not a Fib ratio.

I created a table of numbers as below.
The ratios are constructed by dividing for example 13/8, 13/5, 13/3, 13/2, 13/1 etc.

I noticed that near the top of the table 50% is a Fib number.

What also noticed is near the top of the table the ratios change from those further down.
Eg row 20-34 in the first column is 61.80% but rows 9-19 there are different % ratios.

Question: are numbers like 7.69%, 9.52%, 8.82%...etc Fib numbers but not recognized as such?
Also I'm intrigued when they say 50% is not a Fib number but it appears so in the table?

Maybe what they mean, is 50% etc are not predominant repeating Fib numbers, would that be the correct interpretation?

 

[easymon1]

50%, 100% 200% are used beside fibs by the afficianadoes for measured move trades and by some for retrace moves. The question each trader needs to generate his own stats on is Does it make money in MY hands? lol

 

[murray t turtle]

50%, 100% 200% are used beside fibs by the afficianadoes for measured move trades and by some for retrace moves. The question each trader needs to generate his own stats on is Does it make money in MY hands? lol

%%
GOoD points but those are not fibo numbers, not unless you figure 200 is , because of 0,0,2.
200% moving average, now i will watch for that one;
Sounds like a trend off 200dma or fibo 233 day moving average /LOL Wave after wave.
Is SPY bullish because its above fibo $377??,

 

[easymon1]

%%
GOoD points but those are not fibo numbers, not unless you figure 200 is , because of 0,0,2.
200% moving average, now i will watch for that one;
Sounds like a trend off 200dma or fibo 233 day moving average /LOL Wave after wave.
Is SPY bullish because its above fibo $377??,

Yeah, call em what you will, but do your stats befor you trade em, lol.

 

[easymon1]

I've noticed some strange price action behaviour

Don't know if this will help but FWIW - Fibonacci theory 4-minute read
What is the Fibonacci sequence? What are Fibonacci ratios? Gann ratio Fibonacci retracements
https://www.forex.com/en-us/trading-academy/courses/advanced-technical-analysis/fibonacci-theory/

Some people swear by fibs.
I can take em or leave em over here. Def not my go-to considering for my purpose ya gotta
draw them yourself. Turns out that the fib levels often converge on pivots and moving averages anyway when the price gets near, and they Do draw themselves and offer the same value or more as places to pay special attention to ultra simple price action around, like hammers and engulfings.
If a double bottom or top is in play, I def want to know there the 100% measured move is at though.
For the way you work those spreadsheets, fibs might prove to be worth some investigation, but I'd still prioritize that work after looking into pasting some pivs and moving averages on that spreadsheet.

 

[murray t turtle]

Don't know if this will help but FWIW - Fibonacci theory 4-minute read
What is the Fibonacci sequence? What are Fibonacci ratios? Gann ratio Fibonacci retracements
https://www.forex.com/en-us/trading-academy/courses/advanced-technical-analysis/fibonacci-theory/

Some people swear by fibs.
I can take em or leave em over here. Def not my go-to considering for my purpose ya gotta
draw them yourself. Turns out that the fib levels often converge on pivots and moving averages anyway when the price gets near, and they Do draw themselves and offer the same value or more as places to pay special attention to price action around.
If a double bottom or top is in play, I def want to know there the 100% measured move is at though.
For the way you work those spreadsheets, fibs might prove to be worth some investigation, but I'd still prioritize that work after looking into pasting some pivs and moving averages on that spreadsheet.

%%
Makes sense\
once one finds a bottom area on a 10 year chart\
QQQ bottom below $20/went on past $200, but that did not seem to matter much then or now.And in that bear $20 was nor claerly a bttom area fro a long time.
But 200day moving average can help, so study of enough fibo or non fibo number may help.
Measured moves seem to work much better in hindsight;
but 50 is a double fibo, like 55, 200.}
Pivots helped, but my charts got so messy +muddy with indicators i had trouble even seeing price , took off the pivot points. Thanks

 

[easymon1]

Measured moves seem to work much better in hindsight;

Said like a true cup and handle non-believer, lol. Not that there's anything wrong with that.
Gotta agree to disagree with you about the hindsight only value of rules based trading of double top and bottom 100% measured moves. That setup was Made for measured moves, black and white.

 

[mikeriley]

Not referring to you Mickey, but I suspect many allow
back-testing software keeps them from the truth
concerning the subject.

 

[murray t turtle]

Said like a true cup and handle non-believer, lol. Not that there's anything wrong with that.
.........That setup was Made for measured moves, black and white.

%%
ACTUALLY i do believe in them, but in hindsight only ;
i just never have spotted them in real time, so they are useless for me except its just a pause in an uptrend. HIS real cup handle patterns most all[not all] ran a lot past high part of page.......
Objective ways to measure a a trend or trend pause help me much more;
+ work well. I cant really call anyhting a cup with a handle except in hindsight+ thats a cash pattern by the way, in IBD examples .
If you can use 100, fine with me; 200 works much better for me.
NO disrespect to the cup with handle bunch[CAN SLIM, SLIM JIM/LOL all that]

 

[themickey]

I'll add more comments to this thread later, am busy much of today on other stuff.