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  • The Rabbit Hole of Fibonacci

    From dailyfx.com

    In our last article we looked at Static Support and Resistance in the Forex Market. These methods are objective and non-negotiable in identifying potential price levels at which price action may stall or reverse. In this article, we’re going to look at a more subjective form of Support and Resistance analysis: We’re going to investigate Fibonacci. In our next three pieces, we’ll take all of these support and resistance mechanisms and we’ll show you how traders can actually put them to use. If you’d like to be notified upon the availability of these articles, you’re more than welcome to join my ... (full story)

http://www.lhup.edu/~dsimanek/pseudo/fibonacc.htm
Quoting Mingary
http://www.lhup.edu/~dsimanek/pseudo/fibonacc.htm
Thanks, that was much more interesting than any drivel from dailyfx.
Carbon-Dioxide: the gas of life!
Nice one chaps, just to let many of the newer members know, fibonacci, elliot waves abcd patterns are alla a load of rubbish.

I use to think that they worked having read books by Robert Minor, Larry Pesavento, Steve Cophen. I spent years loosing money, I never really tested it and I took it at face value.

Simply put they are useless for trading, I could hand pick some choice examples and make a solid case for all of the above, but I would be cherry picking.

Throw all this rubbish in the bin and look at pure price charts, I even got one of my old books out and looked at some of the examples, now that I can read price action I realised that the examples shown had not reversed at the magic number, but had reversed because the area was a supply area.


All you need in trading is support and resistance, supply and demand and trend coupled with a method of going for 2:1 win to loss ratio thats it.
  •  Guest
  • | IP XX.XX.70.97
There is absolutely no discussion that the Fibonacci levels, in particular 0.618, 1, 1.618, also 2.618 are definite targets in financial markets. I've been trading for 4 years and am still waiting to see an exception. Particularly spectacular was the increase in Gold price that over a ten years or so period targeted 1.618 to the 3d decimal before price reversed !!
- They are always present in the ubiquitous zigzags (why so?)
- They work in triangles most of the time
- They are a great help to clear up where you stand in price patterns.
Two problems with Fibos :
1) Most traders don't know how to use them, even how to draw them properly
2) Thinking they are a trading tool. They are not part of a trading strategy.
To use only for targets and for clearing up price patterns !
Just to illustrate the point I looked for the fib patterns so called abcd and had you shorted the EURAUD at them even in a down trend you would have lost money each time.

I also marked in the supply level to show how much better it is then the fib crap

http://screencast.com/t/UAsNVPHGzj

suggest we call the article "the rabbits arse of fibonacci" instead of calling it hole. Its just window dressing really.
  •  Guest
  • | IP XXX.X.69.155
@ Mike : Fibonacci and Eliott Waves are the perfect match. The reason is that EW are based on Fibonacci too. Learn to master both for huge profits. At least this is how it works for me, no reason it couldn't work for you if you don't mind spending more time learning than trading
[quote=Guest;7534254]There is absolutely no discussion that the Fibonacci levels, in particular 0.618, 1, 1.618, also 2.618 are definite targets in financial


.618 is often overshot, lets see some real time examples. Here is a .618 level to illustrate my statement.

http://screencast.com/t/la5Bw3nZOCV


this looks like a 1.618 projection, but in reality it is a previous demand area, demand once broken often becomes supply.
http://screencast.com/t/Ucs9OTvIil
Quoting Guest
There is absolutely no discussion that the Fibonacci levels, in particular 0.618, 1, 1.618, also 2.618 are definite targets in financial markets. I've been trading for 4 years and am still waiting to see an exception. Particularly spectacular was the increase in Gold price that over a ten years or so period targeted 1.618 to the 3d decimal before price reversed !!
- They are always present in the ubiquitous zigzags (why so?)
- They work in triangles most of the time
- They are a great help to clear up where you stand in price patterns.
Two...
You are seeing things (:
Relying on some price chart pattern to made trading decisions without understanding the cause for the price move is like believing that the plague can be cured by blood letting.
  •  Guest
  • | IP XX.XXX.70.5
@ Mike
.618 is often overshot, lets see some real time examples. Here is a .618 level to illustrate my statement.

http://screencast.com/t/la5Bw3nZOCV


this looks like a 1.618 projection, but in reality it is a previous demand area, demand once broken often becomes supply.
http://screencast.com/t/Ucs9OTvIil[/quote]
------------------------------------------------------------------

Mike, you are not using Fibos properly! You are in a daily correction of a weekly bearish trend ! What you are now into is a correction before price resume south again.
(Target : Weekly EMA 200 which is a Fibo 1.618 on the weekly chart.)

Fibos are not made to work the way you use them at all. Yes, there are Fibos to be used in this smallish daily correction, but definitely NOT the way you are proceeding !

This is an illustration of what I stated in my post :
1) Most traders don't know how to use them, even how to draw them properly
ok so what you are saying is wave projections are useless, or measuring corrections is pointless. I may say that I am open to new waves to use fib levels.

Would you be so kind as to show some real time work, you can keep your method hidden just the price levels will be fine.
  •  Guest
  • | IP XX.XXX.70.5
Mike I'm not going to give a course here. Just remember that Fibos are for target in motive waves MAINLY (that is, for waves with real momentum, the 5 waves of Elliott waves).
What you were trying to do is set targets in corrective waves. DOESN'T WORK, VERY UNPREDICTABLE !

You get Fibo targets using the Fibo extension tool on motive waves.
For the rpesent swing in EURAUD
-- Starting point is the beginning of motive wave 1, (motive wave starting 27/1/14)
- second point is end of said wave 1 (02/12/14)
-- point 3 is end of corrective wave 2. (03/2/14)

Draw yopur extension. Check that FE 1.618 coincides with EMA 200 ojn weekly chart.

Please note that this motive wave is actually a corrective wave for the previous motive wave starting August 2012, ending January 2014.
As for any motive-corrective wave, price movements are not as nice and clear-cut as with pure motive waves. Nevertheless, it's still workable.
This remark means that target 1.618 on EMA 200 of the weekly chart may be subject to caution (my best guess is that it should work)

After the Weekly target is hit, this will complete leg A of a yearly retracement lasting 70-80 weeks. Wave B will be bullsih and wavec C a new bearish motive/corrective movement.

You can reap profits all the way, with hundreds of entries, either bearish or bullish, if you know how to use the correct times frames and the related Elliot Waves. Elliott waves work on all times frames, from 1 min to weekly (or even monthly). Weekly time frames are useful to understand what's goin on. My trading time frames are H4, H2, H1 completed by H6,H8, H12. Smaller time fames M30, M21, M15, M5 are to "optimize entries" so that my SL is never bigger than 20 pips. I work with at least 6 times frames simultaneously for checks and control, especially for EMAS crossings/rebounds and divergences. THis way, I reduce risks to the minimum and only trade when all odds are looking my way.
But in the whole my stategy is all based on Elliott waves and this is the best thing I've learned for trading Forex. Elliott waves ALWAYS work ! But it takes time to learn who to spot, interpret and use them efficiently.
Hope this helps.
THis will be all for today because I must attend to other things. Have a great trading day!
  •  Guest
  • | IP XX.XXX.40.103
Quoting Guest
@ Mike
.618 is often overshot, lets see some real time examples. Here is a .618 level to illustrate my statement.

http://screencast.com/t/la5Bw3nZOCV


this looks like a 1.618 projection, but in reality it is a previous demand area, demand once broken often becomes supply.
http://screencast.com/t/Ucs9OTvIil
------------------------------------------------------------------

Mike, you are not using Fibos properly! You are in a daily correction of a weekly bearish trend ! What you are now into is a correction before price resume south again.
(Target : Weekly EMA 200 which is a Fibo 1.618 on the weekly chart.)

Fibos are not made to work the way you use them at all. Yes, there are Fibos to be used in this smallish daily correction, but definitely NOT the way you are proceeding !

This is an illustration of what I stated in my post :
1) Most traders don't know how to use them, even how to draw them properly[/quote]
Quoting Guest
@ Mike
.618 is often overshot, lets see some real time examples. Here is a .618 level to illustrate my statement.

http://screencast.com/t/la5Bw3nZOCV


this looks like a 1.618 projection, but in reality it is a previous demand area, demand once broken often becomes supply.
http://screencast.com/t/Ucs9OTvIil
------------------------------------------------------------------

Mike, you are not using Fibos properly! You are in a daily correction of a weekly bearish trend ! What you are now into is a correction before price resume south again.
(Target : Weekly EMA 200 which is a Fibo 1.618 on the weekly chart.)

Fibos are not made to work the way you use them at all. Yes, there are Fibos to be used in this smallish daily correction, but definitely NOT the way you are proceeding !

This is an illustration of what I stated in my post :
1) Most traders don't know how to use them, even how to draw them properly[/quote]
  •  Guest
  • | IP XX.XXX.40.103
Quoting Mingary
You are seeing things (:
Relying on some price chart pattern to made trading decisions without understanding the cause for the price move is like believing that the plague can be cured by blood letting.

So how do you recomend one learns what causes what causes price action, when there are so many contributing fundamental factors?
Quoting Mike Haran
Nice one chaps, just to let many of the newer members know, fibonacci, elliot waves abcd patterns are alla a load of rubbish.
You did it wrong, period.
I suggest you relearn the whole subjects.
Underspeak, overdeliver.
1K Sunny Return This Year: 1,037.6%
Quoting Guest
So how do you recomend one learns what causes what causes price action, when there are so many contributing fundamental factors?
.. I have my own thing, but that's not important.

No matter how you choose to enter a trade. Only 2 factors matter.

1) The price NOW in relation to the entry price AND 2) where you expect it to be in the future.

2) is, by far, the least important.

It took me many years to understand this. That's how stupid I am.
Quoting FXSayWhat
You did it wrong, period.
I suggest you relearn the whole subjects.

Excellent thanks for the advice, please be so kind as to suggest the correct reading material.
I use fibs. I make good money. So use em, don't; whatever.
I have no clue what I'm talking about.
I thank God everyday for the Fibonacci natural sequence
And I thank Jared . F Martinez { Mentor FX CHIEF }he learned me years ago how to use them.
FX Bunte
Using fibs is not always easy but they clearly play a role.
Place the fib tool at major peaks and troughs on a weekly and monthly Cable chart for the entire pre crisis bull run.

Now place the fib tool at pre crisis high to crisis low on a weekly and monthly chart.

Random?

My arse......

The observation is made that fibs often occur at supply and demand zones. Supply and demand zones are where traders are selling and buying.

Yes it is supply and demand that often produces turning points.

Next questions:

Do fibs levels occur at these prices because they are selling and buying zones?

Or do selling and buying zones occur at these prices because they are fib levels?

(Using standard fib levels 23.6, 38.2, 50, 61.8, 76.4)
Come with me if you want to live....
All these people seeing things that ain't there; and they call me crazy (:

Any Fibonacci number or ratio; or that matter, any number sequence or any imaginable way that you can cook the price in any shape or form that you can apply to a chart to measure or predict any move have absolutely zero predictability or reliability.
  •  Guest
  • | IP XX.XXX.172.44
Quoting Ill-b-back
Do fibs levels occur at these prices because they are selling and buying zones?

Or do selling and buying zones occur at these prices because they are fib levels?

(Using standard fib levels 23.6, 38.2, 50, 61.8, 76.4)
Since Fibos levels appear on all time frames, from the one minute chart to the monthly chart, with everything in between ithis is proof enough that Fibos levels, that is the Golden Ratio (with its powers and inverses), are a part of nature and independant of market forces. It has been my observation that whatever news or economic decision ever so badly rock the boat, said boat will rebalance itself according to Fibonacci levels of higher times frames. Thus those who trade on higher time frames are immune to economic news and can trade happily according to Fibos. Of course Fibos alone is no trading method... but alsmost ! Those who know how to trade Fibos with Elliott Waves make a killing.
Fibonacci's only use is as a self fulfilling prophecy; if the market makers and movers use them to place orders they're efficient. If not they're useless, as is most tech analysis.


Quoting Mingary
All these people seeing things that ain't there; and they call me crazy (:

Any Fibonacci number or ratio; or that matter, any number sequence or any imaginable way that you can cook the price in any shape or form that you can apply to a chart to measure or predict any move have absolutely zero predictability or reliability.
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
I see at least one forum member is having similar view like mine - that the tech analysis is overrated and in 90% purely misleading.
Predictable

Lol...
Come with me if you want to live....
Quoting Mingary
All these people seeing things that ain't there; and they call me crazy (:

Any Fibonacci number or ratio; or that matter, any number sequence or any imaginable way that you can cook the price in any shape or form that you can apply to a chart to measure or predict any move have absolutely zero predictability or reliability.
Try placing the GBPUSD points I suggested.
If you think the PA relevance isn't there, your blind.

Or are you concerned about what you might see?
Come with me if you want to live....
I mean heck, place the fib tool on GU weekly chart from 2013 low to 2014 high with standard fib levels I mentioned.

They reflect PA support/resistance levels perfectly all the way at every fib level.
Come with me if you want to live....
Quoting Ill-b-back
Try placing the GBPUSD points I suggested.
If you think the PA relevance isn't there, your blind.

Or are you concerned about what you might see?
Why should I be concerned. It means nothing. Humans are obsessed with patterns; Useful when trying to survive in a hostile environment; Useless and detrimental in trading.

As a proof of concept that fib levels are bogus.

Try this:

1) create any Math sequence of your choosing
2) apply to chart from a low to high of your choosing and observe

==> some of the lines will miraculously fall on some support / resistance levels - somehow "missed" by your favorite fib levels.

conclusion:

http://www.lhup.edu/~dsimanek/pseudo/fibonacc.htm
  •  Guest
  • | IP XX.XXX.199.117
Mingary,

I agree. But it's more than humans being merely obsessed with patterns - it's hard-wired into our brains. In prehistoric times, pattern recognition had a high survival value. If you could distinguish a lion from a rock, you had a better chance of surviving and passing on your genes. But the problem is we start seeing patterns that aren't really there. Constellations, for example, aren't real - stars are distributed randomly, but we want to see a picture such as a big dipper, a southern cross, etc. Likewise, we look at charts and start seeing head-and-shoulders, fibo levels, pennants, wedges, and a hundred other things that aren't really there. To handle the randomness we create phony patterns. That's why most traders fail - they're chasing phantoms on their charts.
There is only one Fib number, 1.618 (and its inverse).
Where did all these other numbers come from?
Carbon-Dioxide: the gas of life!
Arent static support and resistance points just fib levels on longer timeframes?
Quoting magelordmojo
Arent static support and resistance points just fib levels on longer timeframes?
On the higher TF's which I look at, they do often plot this way yes.
Come with me if you want to live....
Obsession with technicals is a fast lane for one to start "seeing" trade opportunities that just aren't there...
Quoting michaelpelly
Obsession with technicals is a fast lane for one to start "seeing" trade opportunities that just aren't there...
I will add that the ONLY thing that is real is the money at risk.
Money-at-risk is the only "technical"
Anything else is pure delusion.
The only validity of fibonacci is 1) self-fulfilling prophecy or 2) pure coincidence. The numbers are not "magic".
"A is A"
My 2 pips worth...

1. Fibos and Elliott Wave work. It DOES take time to truely understand it. VERY FEW can teach it properly.

2. Patience is key to fib trading. Price WILL reach the fib levels almost everytime. Price is unlikely to reach these levels when we WANT it to. Price is on its own time, not ours.

3. Running one fib tool and calling good usually does NOT work. Try plotting multiple fibo tools from multiple swings and look for fib "confluence" zones.

Traders are likely to find these fib "zones" to be far more reliable than just one fib level sitting by itself. Traders should also explore which swings are the most effective to plot the tools from... and which fib levels price will respect from these various measurements. This takes time to learn. Traders have to put in the time.

Just because a trader has tried fibs and failed at fib trading doesn't make it rubbish... It is more likely that your teacher didn't properly understand fibs and his/her methods of using fibs are rubbish. I have seen charts from the so called experts that do not even know how to properly plot fib tools... its no wonder that traders who rely on these so called experts are calling fibs "rubbish", "coincidence" or "self-fullfilling prophecy".

Furthermore, fibs work on more than just horizontal price levels... They are even more effective from a diagonal perspective. If you do not understand what that means, then it is highly likely you definately had a teacher that did not truely understand the magnitude of fibo possibilities and effectiveness. Additionally, when properly plotted, fibos work awesome to effectively time market turning points.

I already know that many traders will call my post 'rubbish'.
To those of you that do, I will tell you in advance -
OKAY! you keep doing what your doing to make money...
I will keep on using advanced fibs to win 71% of my trades, with an 85% timing accuracy rate...

Best wishes to all traders for success and wealth from your trading, no matter your methods & techniques.
Quoting deanoracer
My 2 pips worth...

1. Fibos and Elliott Wave work. It DOES take time to truely understand it. VERY FEW can teach it properly.

2. Patience is key to fib trading. Price WILL reach the fib levels almost everytime. Price is unlikely to reach these levels when we WANT it to. Price is on its own time, not ours.

3. Running one fib tool and calling good usually does NOT work. Try plotting multiple fibo tools from multiple swings and look for fib "confluence" zones.

Traders are likely to find these fib "zones" to be far more reliable than just...
Any method in TA is a way to make sense of the price move -- fibos inculded.
If it works for you then great.
For someone else, it might be Astrology....
It's not the method that makes money, it's how the trade is managed. And for that, ANYTHING can be used --- even flipping a coin - head I sell / Tail I buy.
The fundamental reason why this is true is that once you are in a trade, no matter what analysis you used, you are committed to the position.
Quoting Mingary
Any method in TA is a way to make sense of the price move -- fibos inculded.
If it works for you then great.
For someone else, it might be Astrology....
It's not the method that makes money, it's how the trade is managed. And for that, ANYTHING can be used --- even flipping a coin - head I sell / Tail I buy.
The fundamental reason why this is true is that once you are in a trade, no matter what analysis you used, you are committed to the position.
I agree w/you 90%. Its true that any method in Tech Analysis will work... as long as the trader understands the method COMPLETELY. Although I use multiple methods of tech analysis, I commented on this thread because fibs & EW are the main focal points of my analysis & trading, and that was the subject of this particular article.

For example, if I used moving averages as my analysis and strategy for trading, most would say to enter on a cross of 'ABC' moving average and 'XYZ' moving average. Truth is, this is the worst way to trade moving averages, there are multiple other extremely effective ways to use a moving average to analyze & trade. So again, whatever the method, know it COMPLETELY.

If a trader uses Moving Averages, Momentum, Harmonics (harmonics are fibs BTW), S/R, Supply/Demand, Candlesticks, Fibs, Astrology, etc - fine!!! Just so long as that trader understands the method... and understands what to look for when that method fails...

Like you said, trade management is key, so the only part of your comment I disagree with is the 'committed' comment. When my trade orders do fill, I have no problem managing an exit when I see a change.

My commitment is to my account balance, I could care less if I am right in my analysis. In fact I believe knowing when to get out should be more of a commitment than staying in a position.

Market conditions can change no matter what method of analysis a trader uses... when a market condition changes unfavorably to a trade, 'uncommit' and wait for the next set up... knowing your method COMPLETELY should allow each of us to this... comfortably.

Again, my best wishes for success & wealth to all traders, no matter the method & strategies used.
100% wrong.

Quoting deanoracer
I agree w/you 90%. Its true that any method in Tech Analysis will work... as long as the trader understands the method COMPLETELY.


.
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
  •  Guest
  • | IP XX.XXX.199.117
Fibonacci numbers do NOT work in trading. It's numerology and pseudo-science.
It has no basis in supply and demand, order flow, economic reports, or any of the things that actually cause price action. It's a phantasm, an attempt to find patterns where none in reality exist.

The same applies to "financial astrology", which ranges from actual astrology (trying to predict market behavior by noting the positions of planets) to more abstact forms such as Gann and Elliot wave analysis. Neither of these methods work either - they're hokum. Still, some traders try to pull profits using these examples of flotsam and jetsam.

The truth hurts, but I would be derelict in my duty if I didn't warn fellow traders against these "methods". Let's start with W.D. Gann. Scammers trying to sell systems love Gann and claim he made millions trading. Well, that's simply not true.
Some years after his death his son, who was also a broker, was interviewed. The son stated clearly his father made his money by inventing and selling trading systems. Gann's estate at the time of his demise was worth about $150,000 - good money in the 1950s , but far short of the hundreds of millions some falsely claim he made.

R.N. Elliot was a failed stockbroker who went "belly-up" in the crash of 1929. He invented his "wave theory" and made some modest income for a while selling books about his so-called waves. He died penniless in a New Jersey insane asylum in 1948.

I realize some here at FF will be furious at me for telling the truth about Fibonacci, Gann, and Elliot . But hopefully a few readers will ponder these truths and realize using pseudo-science will only blow out their accounts. Maybe then they will start thinking about the real drivers of the forex market - economic news and the subsequent flow of orders they generate.
Like anything else, trading has to do with luck and talent. One can have a bunch of knowledge, yet not succeeds. And technology such as HFT makes it more difficult.

Example, 15 min chart. One can draw by hand. A step more advanced is to use computer chart. Next is Expert Advisor. etc. etc.

But talent and luck beat them all.
Quoting Guest
Fibonacci numbers do NOT work in trading.
They don't. They only work on charts. They fit the charts, but they don't fit for trading. Chart and trading are 2 different things. Don't mix them up.
Good post.

Quoting Guest
Fibonacci numbers do NOT work in trading. It's numerology and pseudo-science.
It has no basis in supply and demand, order flow, economic reports, or any of the things that actually cause price action. It's a phantasm, an attempt to find patterns where none in reality exist.

The same applies to "financial astrology", which ranges from actual astrology (trying to predict market behavior by noting the positions of planets) to more abstact forms such as Gann and Elliot wave analysis. Neither of these methods work either - they're hokum. Still,...
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
Quoting Spreadbetter
100% wrong.
Okay. To each his own.

I use multiple methods, including fibs. My methods work and they grow my account every year ---- year after year after year...
I sincerely hope your methods are doing the same.
No need to be disrespectful to anyone with our opinions.

Like I wrote earlier...good luck to all traders for success and wealth, no matter the methods used.
Quoting Mingary
You are seeing things (:
Relying on some price chart pattern to made trading decisions without understanding the cause for the price move is like believing that the plague can be cured by blood letting.
NICE!
http://youtu.be/ChQ0SUiPExI


Technical levels work, but it's fundamentals that drives the market.
Quoting Mingary
Why should I be concerned. It means nothing. Humans are obsessed with patterns; Useful when trying to survive in a hostile environment; Useless and detrimental in trading.

As a proof of concept that fib levels are bogus.

Try this:

1) create any Math sequence of your choosing
2) apply to chart from a low to high of your choosing and observe

==> some of the lines will miraculously fall on some support / resistance levels - somehow "missed" by your favorite fib levels.

conclusion:

http://www.lhup.edu/~dsimanek/pseudo/fibonacc.htm...

Linear recursion sequence....

I agree...if it wasn't for the fact, lucas and fib numbers on a chart...higher probability of markets finding their way to resistance or support, is it random ...My method of trading in part uses Fib, Lucas numbers, and certainly do not rely on them as we must remember if markets were random...a foundation of argument could be made. Markets are manipulated, and if not by institutions by the very rules which attempt to regulate, and suffocate the life out of random people making money because the people for whatever reason find fib, lucas helpful and any other method to make gains which are discounted by a number of people on this forum....Do you discount Gann, Elliot, Bollinger or just fibonacci?
Gregory D. Alexandr
Quoting Mingary
http://www.lhup.edu/~dsimanek/pseudo/fibonacc.htm

I would have thought by now, this society would have been using other technique to systematically remove profits from markets, instead were left with mathematics which have been in use since the 1400's....Amazing....
Gregory D. Alexandr
Quoting Guest
Fibonacci numbers do NOT work in trading. It's numerology and pseudo-science.
It has no basis in supply and demand, order flow, economic reports, or any of the things that actually cause price action. It's a phantasm, an attempt to find patterns where none in reality exist.

The same applies to "financial astrology", which ranges from actual astrology (trying to predict market behavior by noting the positions of planets) to more abstact forms such as Gann and Elliot wave analysis. Neither of these methods work either - they're hokum. Still,...
Do you actually trade? or just reading off things from other failed article from failed traders?

Before you answer my question above. Answer this first, how does price action works in terms of its reaction to price levels? besides the fundamental reasons, what drives the prices action?

I am not "furious" about the statement you made, I am under the impression that you got it all wrong from whatever the source you received from.
Underspeak, overdeliver.
1K Sunny Return This Year: 1,037.6%
Quoting Mike Haran
ok so what you are saying is wave projections are useless, or measuring corrections is pointless. I may say that I am open to new waves to use fib levels.

Would you be so kind as to show some real time work, you can keep your method hidden just the price levels will be fine.
Mike,

feel free to take look my trade showcase here, there are couple here used Fib. level and they worked out perfectly.

Also for those who think Fib. levels are complete useless, here are some good examples i have as counter argument.

You need to have a Facebook account to see them.

Fib Sample 1
https://www.facebook.com/media/set/?set=a.225461387483140.76310.212457208783558&type=3

Fib Sample 2
https://www.facebook.com/media/set/?set=a.222272551135357.74845.212457208783558&type=3

Fib Sample 3
https://www.facebook.com/media/set/?set=a.220158841346728.74052.212457208783558&type=3

Let me know what you think. Should I keep going?
Underspeak, overdeliver.
1K Sunny Return This Year: 1,037.6%
Quoting Mike Haran
Excellent thanks for the advice, please be so kind as to suggest the correct reading material.
the sample you gave did not give too much information for me to study. One thing i can tell is Fib. level is not bullet proof. It takes a little time to draw it right and sometimes you need to be creative.

Wait have I mentioned about the double Fib. level analysis? No, i have not, and that's the sweetest.

Anyway, from the sample you provided here: http://screencast.com/t/la5Bw3nZOCV

I notice the sample was on the 1h TF,

1. what about the price action on other time frame
2. where were the price action directions? Were you trading against the long term trend or for the long term trend?
3. Were you trading on the major news release??
4. You only tried the fib level one time and say it's completely useless??? Just this sample you posed above?

You are most likely did the Fib. level wrong by making the statement Fib. level is useless.
Underspeak, overdeliver.
1K Sunny Return This Year: 1,037.6%
Quoting Spreadbetter
Fibonacci's only use is as a self fulfilling prophecy; if the market makers and movers use them to place orders they're efficient. If not they're useless, as is most tech analysis.
Spreadbetter, I have spent my last couple months looking through the forums and "making friend" here and there. I have noticed that news commenting has alwasy been you strong point. I myself had learn a point or two from you through your news insight.

I respect your input in this subject by disapproving it. But would you get it right first? How do you define "TA is useless" and "ALL TA is self fulfilling prophecy"? In my option, if you can make money off TA or you called "useless self fulfilling prophecies", i don;t know what else you got to complain about.

What is the most important feature dose TA indicator offer? What is are the major reasons trader would be able to make money off TA? Why TA has its edge over FA? What's the relationship among FA, price action and market emotion? What is the point to have all the traders in the market killing themselves, to make money, or to study how the exactly the market works? I curious what your answers would be.

That have been said, in the past couple months, I have not seen you anywhere in other sections especially in interactive trading section where TA is heavily valued. I feel the judgement you pressed on TA is a bit off the path.
Underspeak, overdeliver.
1K Sunny Return This Year: 1,037.6%
Quoting deanoracer
Its true that any method in Tech Analysis will work... as long as the trader understands the method COMPLETELY.
I have no problem with this statement; However, even you have TA completely under the control, most the time, what failed most the traders are their risk management and execution.
Underspeak, overdeliver.
1K Sunny Return This Year: 1,037.6%
Quoting frx_trader
Like anything else, trading has to do with luck and talent. One can have a bunch of knowledge, yet not succeeds. And technology such as HFT makes it more difficult.

Example, 15 min chart. One can draw by hand. A step more advanced is to use computer chart. Next is Expert Advisor. etc. etc.

But talent and luck beat them all.

Can you define talent?
Gregory D. Alexandr
Quoting FXSayWhat
Spreadbetter, I have spent my last couple months looking through the forums and "making friend" here and there. I have noticed that news commenting has alwasy been you strong point. I myself had learn a point or two from you through your news insight.

I respect your input in this subject by disapproving it. But would you get it right first? How do you define "TA is useless" and "ALL TA is self fulfilling prophecy"? In my option, if you can make money off TA or you called "useless self fulfilling prophecies", i don;t know what else you got to...
STRONGLY AGREE !!!
Gregory D. Alexandr
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  • Posted: Jun 13, 2014 12:44am
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    Category: Educational News
    Comments: 54  /  Views: 13,525