POLL : Fibonacci ,Gann,Elliot Wave...
- Thread starter fluttrader
- Start date
DiNapoli levels are levels where fibo levels on different timeframes are clustered ?
I don't understand why fibonacci and elliot should work. The only explanation I've ever heard is "these numbers (waves) are occur regularly in nature", which sounds a bit like astrology and crop circles to me.
Because if you believe like I do, that all things are cyclical, that is the basis for EW, markets move in cycles. Life in general does move in a straight line, it goes up or down and pulls backs, which is why it is related to fib. How often do humans, markets, politics move in straight line with their thoughts and goals? They go forward or backward, re-evaluate, etc. EW is based on mass psychology as I understand more than anything. Maybe an EW expert can chime in here.
A friend of mine whom has been trading 20 years told S/R areas don't mean much in themselves. It's how price and volume respond to them when they get there. Makes logical sense to me. I mainly look at things that seem logical to me. S/R areas such a floor pivots and more importantly market profile used in conjuction with price and volume can give you a real clear picture because both are based on volume. Volume moves the market. Fib and EW only work and help to show a trending market that's it.
I agree prices do not move in a straight line but in cycles.
But I don't see any reason why prices should retrace in fibonacci numbers or why there are 5 primary waves, etc.
Other technical concepts such as support and resistance, chart patterns, etc. have logical explanations.
But I don't see any reason why prices should retrace in fibonacci numbers or why there are 5 primary waves, etc.
Other technical concepts such as support and resistance, chart patterns, etc. have logical explanations.
Agreed, 'human' nature is part of nature
As I mentioned I work from price and volume first, then see if they are retracing on wave 2 to about 38% and then put a fib price projection/ext on there to see a "possible target" Wyckoff the master used point and figure which I have yet to learn. I never look for a 5 wave until I already have a confirmed reversal like 2b trade or hammer.