Fibonacci GONE WILD

I decided to start a thread centered around my favorite method of trading: FIBONACCI!!

So, come in and post your trading ideas. This does not negate the use of trendlines, moving averages, or other indicators. However, fibonacci lines should be included in your ideas for a trade.

I have grown quite fond of using fibonacci lines in symmetrical trading. Once I've identified a range, I draw fib lines on it and move them up to the high or low of the range and await for price to reach one of the lines (or near it) for an entry or exit.

Here is one example of the 4hr CAD/JPY: The blue fibs are drawn on the original range and the white fibs are the copy.

4HR USD/JPY

The first chart is a daily of the USD/CAD. As you can see, price made a bottom at the end of the reflected down move.

The second chart is a 4hr of the USD/CAD. I already have the fibs set up for a continuance to the downside. As I type, price is making new, all-time lows. I expect price to bounce off the 76% or 61% fib line at some point if price continues down.


UPDATE: I made a change on the 4hr chart. Before I drew my original fibs (blue), I was debating whether or not to draw from the low of the candle on the left or from the series of candles on the right. The lows only differ by 5 pips but I want as much accuracy as possible. I decided to go with the candle on the left. When I saw that price had made a bounce just above the white 76% fib I decided to redraw the original fibs using the low from the series of candles on the right. After making the adjustment, VOILA!! The price made a perfect bounce off the 76% fib, which goes to show you that price will tell you if you are right or wrong.

I failed to mention that you can have entry or exit points in the original range before price breaks out of it or whenever price re-enters as demonstrated in this 4HR EUR/YEN CHART.

EUR/USD 4HR

1HR POUND/YEN

Well I dont know man, but when you have so many lines crossing your chart you're bound to have price touch some of them at some time.

Hence the name, "Fibonacci Gone Wild".

I think my charts are mild compared to the clutter I've seen on most charts on here, not that there isn't a method to their madness.

I apprecieate your opinion though. It made me laugh.

Bounce Off The 61% Fib on the 4HR USD/CAD.

1HR USD/YEN

CAD/JPY 4HR

If price ends the week above 120.00 but encounters a pullback prior to it happening, I'm looking for a bounce either off the 138% ext. (119.89), 100% (119.49), or 76% (119.21) fib. These are good target areas for a short trade if there is enough momentum to the downside.

Here is a weekly chart of USD/JPY. Right now, price is at a critical level of 117.22 which happens to be the 23% fib level. As you can see, it is a major level in determining whether this pair will become bullish or bearish. The purple line on the chart represents the 50% fib (117.80) of the move downward from June to August.

UPDATE: I added a second hourly chart. I'm going to look for a bounce off the 23% (116.98) or 0% (116.79) fib line for a continuance to the upside.

If price crosses 117.22 with momentum, a long trade would be in order. To be conservative, one could await a retest of that level after the crossing, if it occurs. One could also take a short trade off this level if there is enough resistance with a tight stop on the other side of it.

Those fib lines are so close together that you're never more than 10 pips from hitting one. I dont' see how that is helpful.

If I could find the number for the Fibonacci Abuse Hotline I would turn you in myself.

Looks like a Liberace version of Fibonocci.

Cool thing about Forex indicators is that there's no wrong way to use/abuse them. (artistic license)

That's a good one!!!



Ever heard of scalping? There is something there for the scalper plus a longer term trader. The fibs can give you great entry. Exit when you choose.

If you call this abuse, then I shall continue with the abuse, as long as it makes pips.

The only thing in forex that is set in stone is that you either make money or lose money. Everything else is up for grabs.

Here is an update on the USD/CAD using an hourly chart. Price never closed below the 50% fib.

Hey, if you're making pips then I'm happy for you. To be fair, the whole idea of fibs is that they are a self-fulling prophecy. But, if you're the only using them this way then your skills lie somewhere outside of fibs.

I'm unsure what you meant by that.

I simply mean that if you are successful then it's probably due to something other than your current use of fibs. I truly wish you nothing but the best in your trading.

Fibs are an awesome tool when used correctly. I stopped caring rather or not fibs was a self-fulling prophecy or a natural world order. So I think that it's a combonation of both and it gives me highly accurate entry AND exit point's in the markets.

It's not like ppl who use fibs as a major trading tool is all of a sudden gong to just stop using it to teach the market a lesson, there where always be traders out there, winning and losing alike, you will use fibonacchi as a major trading tool.

I like confluences more then anything of fibs/fibs+S/R - fibs+TL etc etc.

Confluences are even more reliable then just relying on a single drawing. they reveal imho, hidden supprot and resistence levels. Like using pivots without going through the trouble of setting them up.