Fibonacci ratio query

[easymon1]

Zooming in to a daily chart below

"Trading an Engulfing Candle at Support & Resistance provides greater conviction."
https://elitetrader.com/et/threads/...t-right-here-baby.335635/page-10#post-5014575

 

[easymon1]

LP is mos def a lifelong fib dude and will take your calls and emailed questions and very liable to reply by email.

Our hosts will answer your questions LIVE ON AIR! To ask a question call our listener line at 1-877-927-6648

 

[themickey]

My interest in Fibs atm is seeing if they have a reliability factor to add to current tools, always pays to do just a bit more research.
I've looked at them before and didn't like, but am having another more detailed look.

 

[mason macgregorson]

For many years I'd disregarded Fibs believing they were nonsense.
We

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?

\\


Fib has been useful is explaining Trump's hair style:

 

[easymon1]

Wheat cued . . .

 

[semperfrosty]

I'm still in the early stages of attempting to make sense of Fibs (if possible) but looking at the below chart, how does Fibs calculate the last recent bottom which is a gnats below $124.00?
Anyone?

View attachment 313512

Mightn't be the best chart for Fib analysis.

In Sep 22 when price reacted strongly to 124 it established itself as a key level.

Potential trading pain across October trying to take advantage of this level again with eventual success closer to November for a big move.

That would make the move back to March 23's 124 a 100% which,of course,is not unique to Fib.

Just an opinion.

A clever trailing stop strategy may have prevailed?

 

[mason macgregorson]

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.
View attachment 313397

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?

I will guess that the reason we are not able to understand Fibonacci is that there are secrets about the use of Fibonacci. Fortunately I I have obtained an ebook of Fibonacci secrets that I can share them with you and now that you have them & there will be no more secrets.

 

[themickey]

I will guess that the reason we are not able to understand Fibonacci is that there are secrets about the use of Fibonacci. Fortunately I I have obtained an ebook of Fibonacci secrets that I can share them with you and now that you have them & there will be no more secrets.

Thanks for that, I'll have a read.
So far haven't found any edge to using Fibs. Yesterday basically spent most of the day looking at charts to see if I could detect any meaningful sequence using trend lengths, all I could come up with is what appears to be coincidences at this stage. It's attempting to find tops and bottoms is what the goal is, using numbers.

 

[mason macgregorson]

Thanks for that, I'll have a read.
So far haven't found any edge to using Fibs. Yesterday basically spent most of the day looking at charts to see if I could detect any meaningful sequence using trend lengths, all I could come up with is what appears to be coincidences at this stage. It's attempting to find tops and bottoms is what the goal is, using numbers.

And get this, if you're ever confused on what Fibonacci ratio to use, you can just use your middle finger.

 

[murray t turtle]

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.

%%
LOL exactly, same with a grid or multiple moving averages.
Just first 0- 33.0, numbers has a fairly high % of fibo numbers. Even more if one uses 33.88 patterns .
Using these noted patterns, 0 + 50 are fibonacci numbers, even if fibo numbers are not a fibo level/LOL