DislikedYes, I am familiar with the fractal behavior of markets. I even believe in it. Here's where things go wrong:
Let's say you have a 100 pip move like the ones you have shown on your charts. You then draw a 23%, 38%, 50%, 62%, and a 78% line. On a 100 pip move those numbers are actual pip values as well as percent. In other words, 23 pips retracement, 38 pips....you get the idea.
Now, I assume that for you the declare a fib stopped price you can be off by a couple pips. Giving you the benefit of the doubt, I'll give you 5 pips either side. So, if price retraces 50%, or 50 pips, you can say the fib worked if price turns anywhere from 45-55 pips. This is a 10 pip band. Given that you have 5 fib numbers and each have a 10 pip band where you can declare magical success, we find that in a 100 pip retracement you get to say that fibs worked 50 out of those 100 pips. Guess what? That is a 50/50 chance. No better than a coin flip! How anyone can say that contains any statistical accuracy is beyond me.Ignored
For all the thing u said abv...i have only one thing to say tat Fib study is a gr8 tool which i use to get confirmation of my entry/Exit combined with other Tools/Indicators i use.
I won't say that i solely trade on Fib Studies as i don't. I combine Fibs with other indicators like Moving Avg., PPoints, Stochs, Macd and then all the things are allined in a particualar direction i go for a trade.(But thats just me, Everyone has there own trading style.)
DislikedI normally wouldn't have corrected you or stated my opinion but you sort of came off as an authority on fibs and I didn't think it was right to not have an opposing view.
Hmm here whr u got me wrong mate... i never said i m the ultimate Fib master or an athurity on Fibs... if u read my first post, which i started for newbies who are stuggling to understand how fib studies work, i said all the Traders who have good Knowhow on this topic should post their methods/tips/tricks. Apart from that i will also put some images with some desription so newbies can get an idea.
DislikedBy the way, 50% is not a fib number, it's 48.6.
Yea i know 50% is not a fib....neither 0% nor 100% but i keep them with the Fib lines to get and idea wats happening...
BTW i wud like, to see the way u trade Fib, if u do. Wud be appriciated to know ur Tips and tricks aswell.
Another thing i said in my 1st post i will say again....to all the traders who think they know something related to Fibs put ur views and share ur ideas with others.