Fibonacci Retracement Trading

[MAESTRO]

Quote from cashmoney69:

Hey MAESTRO, hows the trading been this year for you so far?

Not very good. I have been exceedingly cautious. I am only up 2.5% in January this year. Mind you I only had 15% of the capital in play. The rest of it is in cash. I did much better in 2008 but got nervous by the end of it.

 

[YTEurope]

i use them too, good stuff,heres my contribution :

 

[nukethewhales31]

Quote from TraderZones:

fib levels are not more significant than any other level. Studies such as the following (attached):

"Our conclusion must be that there is no significant difference between the frequencies with which price and time ratios occur in cycles in the Dow Jones Industrial Average, and frequencies which we would expect to occur at random in such a time series. In our introduction, we noted that empirical evidence from academic studies suggests that not all of technical analysis can be dismissed prima facie. The evidence from this paper suggests that the idea that round fractions and Fibonacci ratios occur in the Dow can be dismissed."

sshhhh dont tell them this i cant take their money :/

 

[cashmoney69]

aud/usd +83 pips.

 

[options4me]

Waited for the release of the Existing Homes Sales report before I entered.

$480 after commission.

 

[cashmoney69]

Quote from options4me:

Waited for the release of the Existing Homes Sales report before I entered.

$480 after commission.

do you try and time your option trades along with the fibs?... for example if the extension fib is showing xyz stock at 130.00, do you try and buy march 125 calls for example?

please explain how u work fibs and options together. thanks

 

[options4me]

Quote from cashmoney69:

do you try and time your option trades along with the fibs?... for example if the extension fib is showing xyz stock at 130.00, do you try and buy march 125 calls for example?

please explain how u work fibs and options together. thanks

I mainly look at the opening movement in the first 1/2 hour for my direction.
Buying near term month, ATM.
The ATM will have the most intraday volumn and price range.
Place the Fib on the HIGH and LOW in that time period and then I look to where the extention line are at.
Sometimes I will buy at the "C" location ( A,B,C setup), then look to exit at the extention levels... or wait it out and buy an option after it has made it thru the extention and looking for a retrace.
Either way I let the fibs tell me where to get in and out.

It is mainly in the eye of the beholder...
Just place some fibs w/ extention on a 2 min chart, Look for an A,B,C pattern, and see what it gives you.

 

[options4me]

Did not like the way QQQQ looked at the open. Not much to work with so I diverted to USO today.
First ABC setup failed with a spike higher that the "A" point. After the Oil Inventroy report came out I was able to set up the fibs on the retrace and let it tell me where it was probably going to..

Profit of $740 after comm.

 

[cashmoney69]

a 2min chart?...i dont trade lower than the daily (in stocks), but im sure the method works on longer tf's also...I wouldnt think fibs hold up very well on the 2min..?

 

[options4me]

Quote from cashmoney69:

a 2min chart?...i dont trade lower than the daily (in stocks), but im sure the method works on longer tf's also...I wouldnt think fibs hold up very well on the 2min..?

I am Daytrading. I use the Fibs to point out opportunities, possible entries and exits...thats it.
It is just the tool that I have had the most success with.
I've tried CCI, Stochastic, RSI, linear Regression channels, but I personally prefer to use the Fibonacci w/ extentions.