And I am telling you that in all 3 Sierrachart tools with The line A-B representing the length of price move, and the amount of customization available, the results of one tool can be generated in another tool.
Fibs don't work
- Thread starter SunTrader
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And I am telling you that in all 3 Sierrachart tools with The line A-B representing the length of price move, and the amount of customization available, the results of one tool can be generated in another tool.
...are you saying that you can use the fib expansion tool to produce the results of the fib projection tool in SC?
Considering that the expansion tool requires 2 anchor points and the projection tool requires 3, I doubt it.
I use retrace, expansion and projection tools on sc and am familiar with them.
Please post for a random non-contrived situation, a single chart showing that you can produce identical fib levels using the fib expansion tool and the fib projection tool on the same chart, while showing where your anchor points are.
I can put ice cubes in my pockets to keep cool on a hot day but I use the HVAC instead.
You on for happy hour?
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He Fib , Daily
I should've said it that way. The default settings of the SC tools are default by design. Also by design, default settings of these SC tools are very customizable.
That's actually funny. I love the double entendre.
I would say trading is basically finding a crack in reality that allows you to extract money using the thoughts in your brain. I would say about fibs, is that the lower fibs work better during an actual retracement. They will do nothing for you when the market is crashing.
You can crack reality in many ways just using your thoughts. I am able to count cards, I have a system that works for limit poker. I can make an ATM give me money.
You need to put yourself in positions to make or save money. A car is a tool, I bought a used Prius since they last forever and I can save gas as well. I don't need a new car that will lose 20% of its value when you drive it off the lot.
“Do not try and bend the spoon, that’s impossible. Instead, only try to realize the truth… there is no spoon. Then you’ll see that it is not the spoon that bends, it is only yourself.”
You can crack reality in many ways just using your thoughts. I am able to count cards, I have a system that works for limit poker. I can make an ATM give me money.
You need to put yourself in positions to make or save money. A car is a tool, I bought a used Prius since they last forever and I can save gas as well. I don't need a new car that will lose 20% of its value when you drive it off the lot.
“Do not try and bend the spoon, that’s impossible. Instead, only try to realize the truth… there is no spoon. Then you’ll see that it is not the spoon that bends, it is only yourself.”
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Lots of good debate and discussion on the value of FIBS here. I decided to take a look at Friday's ES action on a two minute chart. Check out this swing high to swing low and I make three points all supporting the fibs.
1. The 50% retracement provided a profitable entry upon its rejection
2. The 61.8% retracement did the same.
3. The next explosive break to the upside of the 61.8% provided a Katie bar the door upside move.
4. The retreat from the 100% retracement provided a counter trend entry
5. Also the retreat from the 127.2% retracement provided counter trend entry
And that is not all. The point that I used as the swing high to start the FIB also was the 23.6% upside retracement of the first down move of the day and a perfect place to join the downtrend in progress. Take a look at the attached chart.
1. The 50% retracement provided a profitable entry upon its rejection
2. The 61.8% retracement did the same.
3. The next explosive break to the upside of the 61.8% provided a Katie bar the door upside move.
4. The retreat from the 100% retracement provided a counter trend entry
5. Also the retreat from the 127.2% retracement provided counter trend entry
And that is not all. The point that I used as the swing high to start the FIB also was the 23.6% upside retracement of the first down move of the day and a perfect place to join the downtrend in progress. Take a look at the attached chart.
Also here is the first chart starting with the high after the cash market opened at 8:30 Central time and the swing low. The 23.6 was an exact retracement top and a chance to join in the downtrend. For clarification, I did not trade these but I just make this observation supporting the idea that it might be good to know just where the fib levels are.
You do a very good job of illustrating your point, but I think there is lots of hindsight bias going on here. If we are to take a short at the 23.6 like in your second chart, we have to also assume that a short should be taken on the first chart, and there is blows past 23.6. Sure, you can have a filter for when to enter, and at least this 23.6 provides a nice double top, but then if using double tops, then this doesn't work on the 50% and 61.8% like in your first example since price blows through those levels the second time it comes up.
I do think we need to see the whole chart to see that your first example is rather cherry picked. This example is my fib retracement C, which starts at point D. It looks almost random really. If we picked another swing high, like at point E, which produces the B fib retracement, then we see that price didn't really turn at the 23.6, and didn't make it to 38.2.
The first fib, A, did curiously also have a nice short entry at the 38.2, but it blew through the 23.6
So I think if we are to look at this in the context of using every major swing point as a possible beginning for our fib retracement, and then try and take shorts at the 23.6, the 38.2, the 50 and the 61.8, we might find that there are too many combinations. Once we start to mess around with different stops to try and maximize the wins, or try and use different reasons for entry, which means some good trades will be skipped, or some entered that fail, the magic of fib retracements might disappear.