Fibonacci Retracements
- Thread starter ToTrade
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Calling them 'Fib' numbers is quite an apt term - they are indeed BS.
As for the above example, what if we DON'T set the base to a value of 2? what if we set it to a base of something else, 3, 10? What happens then? As it stands, it is definitely not a coincidence.
Fib ratios are just an observed phenomenon of nature. Nothing more, nothing less. To infer from that that they somehow have relevance to every aspect of existance is just ludicrous.
what if my phone number is (618) 382 1618 ? What would that mean? What if I generate $1000 worth of commissions one day and $618 the next? Will nature beckon me to make a few more trades?
Sarasota - thanks for your post(s). But just fyi, the Golden Ratio goes WAY back before Gann... some interesting history (and a fantastic site for mathematical history):
http://www-groups.dcs.st-andrews.ac.uk/~history/HistTopics/Golden_ratio.html
You sound confused.
Apparently you don't understand. .618, .382, etc. are not fib numbers per se, they are proportions of any given fib sequence. Look at the post I did last night with 2 random numbers selected.
Your telephone number or the amount of your commissions on losses is a coincidence, fib numbers throughout nature are not. You state "Fib ratios are just an observed phenomenon of nature. Nothing more, nothing less." EXACTLY! Guess what, they are also observed in the markets!
As far as the Pyramids, the numbers in the base, height, whatever, are in fib proportions. You can set the base to whatever you choose, it will still be in proportion. Although I respect your opinion, to make a statements of "ludicrous, BS", etc. and not back them up and tell us why is indeed ludicrous. You are going to need to do a better job of talking about a hypothetical telephone number and commissions on your losing trades to convince me.
Fib numbers are not just a numbers game, it is probably one of the most important mathematical phenomena ever discovered. Its everywhere.
Sorry Madison, I did not click on your link before posting this. However, Euclid was the first name I saw after clicking on your link.
Most of the information I have learned about fibs and their application can be found in Robert Fischer's book "The New Fibonacci Trader." IMO, it is an excellent book.