There is no logic in fibs. It is exactly drawing a line in sand, and consider it as a boundary.
The Logic Behind the Pitchfork 119 replies
Could you explain the logic behind your trading strategy? 6 replies
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applying fibonacci 13 replies
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DislikedFibs work perfectly. So perfectly you can even change the percentages used in the fib tool to whatever you like, and it'll still show price "respecting" the quasi-fib boundaries you've plucked out of your butt. But the secret sauce to fibs is matching it with astrology and tarot. Only trade when the morning paper says your star sign is going to have a good day, but also only when your local crackpot with a deck of cards reads your fortune and says good things. Then sniff some more glue because you are all crazy af.Ignored
Disliked...I have studied fibs for years and while most use them for turns in the market like a 50 or 61.8 this is only part of the story.Ignored
Disliked{quote} A lot of traders mention the 50 level but it is actually not part of the fibonacci sequence. For Fibs levels to be of any real value (like any other form of TA) it needs to be proven that price respects such levels a higher percentage of the time that any other random price level. As a quick test, turn the price chart and background the same colour and randomly place some horizontals lines across the screen. Change the price colour again so you can see the chart and I think you'd be surprised as to how price also respects these random levels....Ignored
Disliked"The logic is: fibos well applied, in price and time, make $." Baloney. There is no logic in it. Fibonacci levels are useless in trading. They're also quite subjective - where does one place 0% and 100% ? Different traders will use different prices, hence it's subjective. Markets don't move because of fibo levels , moving averages , or any other indicator.Ignored
Disliked{quote} You are correct it isnt, but it is a ratio to the overall move swing high and low , I have rules for every retracement level. 50 percent is used by humans daily again another level we gravitate towards, ( oh today a sale , its 50 percent off) , ( i have a 50 50 chance of winning ) , ( are you a glass half full or empty kind of guy) lolIgnored
DislikedFibs work perfectly. So perfectly you can even change the percentages used in the fib tool to whatever you like, and it'll still show price "respecting" the quasi-fib boundaries you've plucked out of your butt. But the secret sauce to fibs is matching it with astrology and tarot. Only trade when the morning paper says your star sign is going to have a good day, but also only when your local crackpot with a deck of cards reads your fortune and says good things. Then sniff some more glue because you are all crazy af.Ignored
Disliked{quote} I'd suggest that the 50 level is probably more reliable that the actual Fib levels and interestingly for the same reason you mentioned.Ignored
Disliked{quote} https://www.youtube.com/watch?v=EZdBzFcvwQY 43:49 in shows Fibonacci. But the whole video is worth watchingIgnored
Disliked{quote} LOL what a crap video I have to admit How many of you are in the EUR USD long from the 61.8 retracement, ahhh sucks to be you if you are not , just another random levelIgnored
DislikedCan someone please explain to me why Fibbonacci levels are used in technical analysis? Where is the logic behind assuming that price will respond to these 'magic' levels? Or do they just form a self fulfilling prophesy due to the vast number of people who watch out for them?Ignored
Disliked{quote} It doesn't matter what lines you choose to assign meaning to...they're all equally meaningless. If you think they help you, more power to you..but you cannot prove they are valid on anything. If you had seen the video...he does prove it. Do you honestly believe when Deutsche puts 2 yards into the market they say: "Oh, we can't do it here...the fibo level is wrong!"Ignored