POLL: Are Fibonacci numbers a worthless or expensive crutch when it comes to trading?

[Bushido]

Quote from TraderZones:

If most people want to be long, doesn't that mean more buyers than sellers and therfore the price may DROP instead of go up?

Buddy you need to stop trading and go and study Economics 101. What you claim here is:

If Most People want to be/are going long (hence there is greater demand)
The price may drop because the supply is less.

And if you think that makes sense there is something seriously wrong with your understanding of basic demand and supply.

Furthermore, the only way you can argue this if the people going long are easily shaken out, get on the band wagon too late etc etc and cause a long-squeeze the price can go down. BUT then: if that happens the supply increases more than demand and obviously the price would go down.

The conclusion, go learn Economics 101.

Btw do you believe you should go long if any indicator says the market is oversold or go short if the market is overbought? This question is only directed towards TraderZones?

 

[IronFist]

Fibs are no different than any other number.

A 34 period MA works just as well as a 33 or a 35. It's not like 34 will make you profitable and 33 and 35 will not.

Same thing with any of them, especially as you get higher and the percentage change between +/- 1 becomes less.

Your magic 233 tick charts would work just as well if they were 232 tick or 234 tick charts. Or 230. Or 250.

Seriously.

 

[murray t turtle]

Quote from cashmoney69:

obviously you havnt looked at the fx market, because they work great for fibs, and waves. It doesnt always work but they can be very accurate.

===================
Worth knowing in any market;
50% is a great one.

10% is one of the best;
storehouse tithe they call it.

50% is a great one in real estate;
not that common, but still great. Dont think any fibe # is as important as a tithe[10% ] or even money management

 

[brocklanders]

Well, if more than half of the ET population think that Fibs are worthless then there must be some value to them after all. This has been a valuable thread just to learn that piece of data.

 

[Thunderdog]

Quote from brocklanders:

Well, if more than half of the ET population think that Fibs are worthless then there must be some value to them after all. This has been a valuable thread just to learn that piece of data.

Using that logic, just imagine how useful astrology must be.

 

[brocklanders]

Well, if over half of ET thought that astrology was bogus it would definitely make me re-examine MY belief that astrology is B.S., but since we are talking about Fibs then I am comfortable still in my beliefs. Seriously, if you think Fibs are bogus that is fine. Using ET to only reinforce your belief without real examination of the subject is sort of a waste of time don't you think?

 

[buylo]

I like them.

 

[Thunderdog]

Quote from brocklanders:

...Using ET to only reinforce your belief without real examination of the subject is sort of a waste of time don't you think?

I was bored and curious. My thread passed the time. My "beliefs," such as they are, are based solely on my own examination and testing, and not on anyone else's say-so. However, I will concede that I never gave Fibs much more than a cursory glance. And, frankly, that was more than sufficient. (I'm just not into the mysticism thing. It's a quirk of mine.) Similarly, if you insisted that a magic genie resided in a bottle, it might prompt me to look a bit more closely in the general direction of that bottle, but I would probably not undertake exhaustive testing to conclusively verify your goofiness.

 

[brocklanders]

I don't think it is mysticism to believe that markets have a rhythm to them that they moves in cycles. It has been shown conclusively that life, even at it's most elemental level, moves in a rhythm. Markets are an expression and a reflection of life. Fibs are just a tool that tries to express that rhythm and should be used as such and not as a holy grail or to the exclusion of all other methods. Sometimes it works really well sometimes not so much. Whatever you believe (or disbelieve) will be true for you though.

 

[AlpineTrout]

Haven't read the whole thread so if I'm repeating.............

Anyway the usual numbers talked about as Fib #'s are 0,1,2,3,5,8,13,21,34,55...... etc.

But you can make up your own Fib sequence starting with any two numbers, for example: 6,9,15,24,39,63.......

Carry it out about a dozen times and you still get the golden ratio.

Conclusion: Fib #'s can't make a difference.



Edit: My comment pertains to choosing a number for things such as, a moving average or tick/volume charts, etc. But, I won't rule out there being something to a confluence of Fib ratio retracements or extensions.