Fibonacci ratio query
- Thread starter themickey
- Start date
Barchart.com use these numbers.
From Google...
"There are other important levels like 78.6% and 50%, which are not Fibonacci ratios but are nonetheless important. The 78.6% level is given by the square root of 61.8%, while the 50% level is a common convention."
"By adding 3.618 (2.618+1), the key Fibonacci extensions (above 100) are 161.8%, 261.8%, 361.8%, and 423.6%."
This value:1.618 is called Phi or the "Golden Ratio"
The inverse of the golden ratio (1.618) is 0.618, which is also used extensively in Fibonacci trading.
Common recognized ratios: 23.6%, 38.2%, 50%, 61.8%, 76.4%, 100%, 127.2%, 161.8%, 261.8%, 361.8%, 423.6%
From Google...
"There are other important levels like 78.6% and 50%, which are not Fibonacci ratios but are nonetheless important. The 78.6% level is given by the square root of 61.8%, while the 50% level is a common convention."
"By adding 3.618 (2.618+1), the key Fibonacci extensions (above 100) are 161.8%, 261.8%, 361.8%, and 423.6%."
This value:1.618 is called Phi or the "Golden Ratio"
The inverse of the golden ratio (1.618) is 0.618, which is also used extensively in Fibonacci trading.
Common recognized ratios: 23.6%, 38.2%, 50%, 61.8%, 76.4%, 100%, 127.2%, 161.8%, 261.8%, 361.8%, 423.6%
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There are 19 trade rooms that have the word fib or Fibonacci in their name, but none of them trade and none of them have a track record. Fibonacci did not trade and 50% is not a Fibonacci number. If Fibonacci is so important or useful or applicable how come no one trades it, especially the rooms that are named after Fibonacci?
Those who have Fibonacci numbers on their charts usually have so many levels plotted it's bound to bounce or reject one just by chance.
I had a look at his web site and watched one of his videos.
He mostly devotes analysis to patterns, M's and W's and bat wing type patterns and other stuff, I made some notes then googled his patterns.
Not my cup of tea.
He mentions lots of fib ratios in his patterns and personally believe they would be difficult to code, seemed very complicated because they're all angular lines with lengths.
Reminds me of traders who fill charts with numerous indicator lines, yeah I can't trade like that.
The stuff I code is just maths, it's not squiggly patterns or indicators.
That's why I'm checking out Fibs, hoping it could add to my tools.
Purely out of an exercise, I have a monthly chart of wheat futures below.
Taken from the low to extreme high, Aug 2016 & Mar 2022.
Using Fib retracement, I'm looking for the bottom of the current correction.
According to the Fib level of 61.8% that would be $624.70.
Zooming in to a daily chart below, we are right on target for the low right now on wheat if 61.8% level holds.
Am I analysing this correctly?
Taken from the low to extreme high, Aug 2016 & Mar 2022.
Using Fib retracement, I'm looking for the bottom of the current correction.
According to the Fib level of 61.8% that would be $624.70.
Zooming in to a daily chart below, we are right on target for the low right now on wheat if 61.8% level holds.
Am I analysing this correctly?
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