Hi Sprout,
I'm not interested much in the theory behind Fibonacci, or Mandelbrot. And everyone probably has a favorite tool about which they have learned all the ins and outs. It's not necessarily that I'm anti-intellectual, only that I found that the Fibonacci products are the best for me. I'll display a chart along with what I was doing.[ATT
It takes a lot of trust, or courage, to consider buying when prices are falling. But if you trust the fibs, and know how to use them, one can get past those problems.
On this day, just about a week ago, the market opened a tiny bit down from the previous day. The trader has to expect a small move down then up. The thing is that each time the bar is formed it seems to have stopped--or closed--right upon one of the fib lines. We can be encouraged by the Stochastic that prices are high in their range and more likely to come than go down. Nor in the following decline does a bar (5 min.) not at least tip its hat to each fib line that it goes though. I see the overnight low (red line)coming and wonder if it will stop there as it very often does, but I see that it's aiming for the pivot (green dots), another important number. And I see too that the 127% is right there at the pivot. There are always counter trend orders around the pivot. A bounce is due from those two: the pivot and the 127% fibonacci level. It's hard to believe until you see prices stop at it and decide to go the other way. Well you can see that I look for possibilities at or around the fib levels, with confirmation from the Stochastic being wise.
