Have you ever thought of Fibonacci retracement on only 2 candles?

[mason macgregorson]

As traders, we look at Fibonacci retracement levels to predict whether the market might resume its previous rise or fall.

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However, have you ever considered the application of Fibonacci retracement using only 2 candles?

• The First Reversal bar acts as a newly established trend phase.
  
• The Second bar mimics a short-term retracement of prices on a larger scale before resuming the main trend.

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When the price in the second bar initially moves in the opposite direction of the first bar, it resembles a retracement—a temporary reversal in price—often observed in larger price trends.

After moving in the opposite direction, the price in the second bar returns to the same direction as its preceding bar and closes in the same state. This behavior is akin to the market resuming its prior trend following a retracement within the broader market context.

A reversal signal appears, indicating an opportune time to enter a position, when the retracement within the second bar reaches a certain Fibonacci retracement level. This approach mirrors how we commonly utilize Fibonacci retracement levels to identify potential entry points for trades.

This concept of Fibonacci retracement using only 2 candles is a new approach to identifying reversal signals for scalping.

there are 20 rooms that had the word fib in their title, for example: dowfibs.com; fibanalysis.com; fibnodes.com; fibolive.com ; fibonacci.com; fibonacciqueen.com; fibonaccitrader.com; fibonaccitradinginstitute.com; fibotrader.com; fibozachi.com; fibtimer.com. They are all pretty much worthless as none of them trade - Fibonacci or otherwise, none of them have a track record, none have any data. Do you have any data on yours or are you going to be all vendor/no trader also?

 

[Scataphagos]

Your “new approach” of using Fibonacci retracement on only 2 candles is logically flawed.

First of all, it begs the question whether a candle really represent the market? No, it doesn’t.

Wrong on both counts. Sorry, but you really don't know what you're talking about.

 

[murray t turtle]

Not flawed at all.

Markets are both price and time.

Guess you never heard of use of Fib Time Retracements/Projections?

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As for two bars, I sometimes use it on even 1. A daily candle that is.

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SURE you use only 2 daily bars, must be drunk now ???
WAKE up those are candlesConfusing candles with bars = ultimate flaw

 

[mervyn]

You can look at DELL chart from the earnings beat, let us know what you think.

 

[murray t turtle]

You can look at DELL chart from the earnings beat, let us know what you think.

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OK/
but with 20/20 hindsight/that's tech even better with 3 day chart + 777 day moving average

 

[mervyn]

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OK/
but with 20/20 hindsight/that's tech even better with 3 day chart + 777 day moving average

But I want to short to the gap down… mean revision?

what has Dell to do with AI? Absolutely nothing.

 

[murray t turtle]

But I want to short to the gap down… mean revision?

what has Dell to do with AI? Absolutely nothing.

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Good down blip on SPY + related [aka mean revision]\;
meaning SH+ related goes up a bit , on SEPT sell off. Good loss cut on QLD........