The breaking of a wave cannot explain the whole sea.
- Joined Feb 2006 | Status: Blah blah blah | 1,410 Posts
The breaking of a wave cannot explain the whole sea.
Dynamic Traders's Fibonacci Price Retracements/Projects Levels 0 replies
Fibonacci Retracements 14 replies
Entering on Fibonacci retracements. 10 replies
Exit Strategy using Fibonacci Retracements 12 replies
fibonacci retracements etc 6 replies
DislikedGiven the amount of lines on that chart, some of the price extrema are bound to match up, a better question might be, how many don't?Ignored
DislikedGiven the amount of lines on that chart, some of the price extrema are bound to match up, a better question might be, how many don't?Ignored
DislikedExactly. I've never understood the fascination of 1000's lines whereas price respected it 3-4 times. Simple understanding of mathematics explains why price "respected" any of those lines a few times. I've done the same mistake myself and learned my lesson. Oh yes, you will get very lucky sometimes but after a few months of trading, when your account starts to shrink, you will throw most of those lines away.Ignored
QuoteDislikedGiven the amount of lines on that chart, some of the price extrema are bound to match up, a better question might be, how many don't?
DislikedExplain the simple mathematics. I am truly curious. No statistics allowed though in your reasoning.Ignored
Disliked(...)I don't think it is the underlying principle that makes fibs work. Here is a question that I like to ponder. Would charts look the same or different if nobody traded or knew about fibs?Ignored
DislikedNice discussing with you!
We believe in the complete opposites, which makes this very good for developing new ideas.
What you say is exactly what I looked for in my quest. If you see early charts (not Forex but stocks), before 80's and technical analysis, you'll see that Fibonacci numbers are not as powerful as they are now.
We can see every single day Fibs bouncing to the pip! This didn't happen before.
Of course there were retracements, and of course Fib fanatics could argue something like "they were there, but the volume was not big...Ignored
Dislikedi also deny fibs and other stuff which just plots lines on charts and dictates price what to do. the best part of this fib stuff are time extensions- big LOL, predicting the formation of a price turnaround date in the future. crystal ball stuff.
you can go much better in determining s/r by learning to read charts and not indicators...
to the subject of using them as targets: why limiting possible gain by closing a trade at a calculated area? close 1st 1/3 at e.g. 1.5x stop size and rest by reasonable stop trailing.
it was said before but the...Ignored
DislikedI cannot comment on old stock charts because I've simply never taken the time to study them. In my previous post I suggested that it would be worth the time for traders to study fibs and find what they are and what they mean. Most traders do not measure price with a fib correctly. The common way we all learn to use fibs is to pick an extreme high and low and measure price, we then use the inner levels for potential retracement. We sit there and look at the chart and say 'oh, looks like it might retrace 23%!' And for most traders thats where fibs...Ignored
Dislikedthe fact that a large number of traders do actually believe in fibs make them a self-fulfilling prophecy. That in large part is how a lot of popular indicators work, just by massaging crowd behaviourIgnored
DislikedThis is the way every valid fib begins, each time no matter what. What happens next, next, next.... Another question for you all...Which line is the trigger line? Is there only one trigger? If not, how many. This does involve elementary school math. Be forewarned.
Scotty BIgnored