Either do I. Have fun with having 38.2 where it should say 61.8
Fibonacci works due to self fufilling prophecy or becuz 618 is embeded in humans?
- Thread starter iamnewuser911
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What difference would it make if they both describe the same horizontal line? Is there a sequence by which the various Fibonacci ratios progressed through?
On your previous chart, there were three measurements made. The third one is the one where price action was corroborated by the Fibonacci line. Were the prior two measurements required for the third? If not were the prior two measurements a fail?
Thanks, Sprout, for your sensible attitude. Too many are trying to one-up others on the basis of nothing at all. I will not be following this thread any more.
The difference is .... clarity.
Price came down from the high to a pivot low and started moving back up or retracing the prior swing. How can it retrace 61.8% of the move before it retraces 38.2% or 50%????????
It's really that simple. But anyone can plot it whatever way they want on their own chart. "It's a free country". But if they want to be understood by others on a public forum, where a majority hopefully plot it correctly, its best to do what the majority do.
As for failed fib lines - they don't all hit exact to the tick every time every swing. A zone is what you try to accomplish. A time and price zone.
Thank you. That is clear and makes logical sense.
So I see the use of two bars to set the high and low.
So the only condition for a fail is if price in it's oscillation doesn't pause on these zones and passes through them? Or is it that another swing high and swing low show up (that do not affirm these prior zones)?
Phew!! Glad we could agree on that first part and the second part yes either the fib cluster zone works or it doesn't. It's just a possible reversal point.
At a cluster zone, using the fib tools, how does one determine the difference between a retracement and reversal prior to price reaching these zones?
Beats me. I put on a trade and let price action and my stop do its work.
Need to get over your dummy spit mate.
The forum is full of differences of opinion and it's all good.
@SunTrader. So in this manner the fibs are similar to standard pivots (?). They are a possible cluster zone where the price MAY reverse off of or break through, and only the next price action will determine which.