Fibs don't work
- Thread starter SunTrader
- Start date
You can see the grid drawn from the high of the morning to the low. As I have stated I don't use fib numbers for retracements as too many good entries fall outside the .312 and .618, 50% is not a fib number but it is the sweet spot (One could earn a nice living trading nothing but 50% retracements). The second grid IS a fib extension and you can plainly see the corrective flags at 23.6 and 38.2. Those flags are formed by algo's taking profit and HFT algo's seeking corrective ticks. This is not theory or opinion, this is what I do for a living.
Do you use fib projections?
See my above post related to the chart. The second grid is fib extension, which is used to project targets.
So you use extensions not projections?
The extension grid defines and projects fib targets. We may be a bit lost in semantics here.
fib projections are not constructed the same way that fib extensions are. They are different tools.
Then I am not sure what you are referring to, simply showing what I do and where corrections often occur at extension levels.
I don't do this for a living yet, but 50% for retracements and projections have definitely been a sweet spot for me as well vs fib numbers. It's not always exact, but close is close enough for me.