See the actual example of a Fib trade a short while ago. The yellow line is the 38.2% retracement and on this two minute chart it had two bars that touched the line almost exactly and with the red pinbar and a lower close below the prior 6 bars it was a perfect entry. I was hoping for a quick retest of the 3643 low but I just took profit when it acted up and did not fully cooperate.
Fibs don't work
- Thread starter SunTrader
- Start date
You are probably correct on this point. Chart bars are crossing Fibs of some sort all day long.I would think that fibs keep one out of more trades then get one in.
Compare wave 3 to wave 1 (I forgot to label them) it is more impulsive faster moving, no overlapping and longer in time and price. All that is to say cleaner looking, which Fibonacci techniques are more effective on. Any high to low will work some of the time. Odds are better when using markers that better reflect what is happening. Impulse is best, then corrective but lastly chop/rangebound/channels I leave alone.
Exactly. Fibs are 100 percent right 61.8 percent of the time.
“We’re right 50.75 percent of the time . . . but we’re 100 percent right 50.75 percent of the time,” Mercer told a friend. “You can make billions that way.” The Man Who Solved the Markets, by Gregory Zuckerman.
Thank you for your explanation, can i ask do you average into a position at agreed fib levels,averaging your position away from your tp, and use a hard agreed stop, and tp ?
Off subject , holidays in country's around the world make so much difference to trading setups
as today.
I am based in the UK, the European and uk open were ok.now set ups are either flat or go to extremes.