please can someone give me an insight on how to use these levels...i have read everything about them and i know all the calculations and stuff....but the application of these levels to the actual chart has been a problem...anyone please
please can someone give me an insight on how to use these levels...i have read everything about them and i know all the calculations and stuff....but the application of these levels to the actual chart has been a problem...anyone please
I'm a noob myself and figured out the fibo on MT4 a while back.
In MT4 just choose the fibo line tool.
Find a "trend" on the chart...from 1 low to 1 high or from 1 high to a low.
put the pointer on the lowest point of the trend, click the left mouse button and hold it in, don't let it go.
Then, "drag" the pointer to the high point of the trend and let go. You should see a dotted line along the trend with the fibo level lines sticking out from left to right.
Each line will have a number or "percentage on it". All this is is the percentage point of the line...i.e. the 50 fibo line is just 50% (half way) up the trend line.
These lines usually act as support or resistance levels. In other words, if a trend goes below or above these lines, it's likely to keep going in that direction....but not always! LOL
It's just an indicator...not a rule.
So, if a stock is going down, and is currently at the 68 line, and it keeps going down...look for it to hit around 50 and then see what happens. If it bounces back up, the 50 is support. If it hits 50 and then it keeps tanking, then look for it to hit the next lower line. etc.
Joined Apr 2006
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Status: UK Veteran Trader
|563 Posts
dont forget to waste an inordinate amount of time also trying to guess which fibo line will bounce with ocillators, pivots, confluences and any other junk you can lay your hands on - this should keep you busy for at least 2 years before you decide to ditch em.
better still, just don't put em on the chart to begin with and when it does 'bounce' just say - "that's support" - this has the same effect and outcome.
dont forget to waste an inordinate amount of time also trying to guess which fibo line will bounce with ocillators, pivots, confluences and any other junk you can lay your hands on - this should keep you busy for at least 2 years before you decide to ditch em.
better still, just don't put em on the chart to begin with and when it does 'bounce' just say - "that's support" - this has the same effect and outcome.
Hope this helps
Ignored
I dont know why you are being so negative, the guy asked for help on how to use them not why YOU think they dont work.
I know of 2-3 traders that use them successfully, and if more then two people can be successful using FIBS, it proves they do work. I often use fibs to look for a bounce off the 38 or 50 level using price action.
There are a million ways to make money in this market so please dont bring your narrow-mindness into this subforum, espically with your 1kt tag you confuse allot of new traders.
dont forget to waste an inordinate amount of time also trying to guess which fibo line will bounce with ocillators, pivots, confluences and any other junk you can lay your hands on - this should keep you busy for at least 2 years before you decide to ditch em.
better still, just don't put em on the chart to begin with and when it does 'bounce' just say - "that's support" - this has the same effect and outcome.
Hope this helps
Ignored
SoulTrader, I like ur takes on Fib levels and other popular technical analysis myths.
Honestly no statistical study could prove the reliability of such ratios , either retracements or expansions, but traders still believe in them.
me myself I believe that price go wherever it wants whenever it wants without any respect to these levels or any other tool. coz simply prices are driven by some superpowers not those hogus bogus mumbo jumbo stuff.
dont forget to waste an inordinate amount of time also trying to guess which fibo line will bounce with ocillators, pivots, confluences and any other junk you can lay your hands on - this should keep you busy for at least 2 years before you decide to ditch em.
better still, just don't put em on the chart to begin with and when it does 'bounce' just say - "that's support" - this has the same effect and outcome.
Hope this helps
Ignored
If you don't know how to use/read an indicator, it's best to stay quiet.
Joined Apr 2005
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Status: Dopey Bastard
|1,568 Posts
SoulTrader,
You were an ass and a totally useless moderator on MoneyTec. You're still an ass, but thank god you're not a moderator here.
Some of us here know your history of swindling people and we know you're full of shit, so keep your high and mighty crap to yourself. You're boorish, egotistic and annoying. Other than that, I'm sure you're a swell fella.
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Joined Jun 2006
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Status: What, NO STOPS !!
|430 Posts
Dopey
You are a breath of fresh air. I just hope the powers that be don't ban you.
evablazin
"I believe", Fibos work because people believe fibos work just like trend lines, S&R lines etc. I may be wrong, I have been wrong before and I will be wrong again. As far as how to use them; it's kind of like asking " how do I get from here to there" there are lots of options but you must find one you can live with. What is your risk tolerance, time frame etc. Look in this forum and many others. You will find your answer.
Shoot me a private message if your still intrested in REALLY learning how fibs work and see it in action. I have an amazing source for you to check out on Fib retracements. There a set of videos and this guy also talks about money management and gives you a pre-set set of rules.
I use fib's and love them, so don't take Soultraders commetns to heart...hell, don't even take mines to heart, just shoot me a note if you want the source and see for your self if they maybe something you would like to include in your toolbox.
