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Fibonacci 50% level

  • #1
  • First Post: Dec 29, 2007 5:28pm Dec 29, 2007 5:28pm
I ve got metatrader up and running and have never used indicators like Fibonacci to determine which way the market moves

I m willing to give it a try so can someone please explain how to get the 50% Fibonacci line up? And secondly what it means and how to interpret it

I use Volumes / Moving averages and charts top determine daily trading patterns but I m keen to try other alternatives and lear from others.

Does anyone know?

Thanks
  • #2
  • Dec 29, 2007 6:05pm Dec 29, 2007 6:05pm
http://i10.tinypic.com/8b57x8p.gif

The gray line is the 50% fib retrace line for the intraday fibs.

Notice the price action near that line.
Attached File(s)
File Type: mq4 i-IntradayFibonacci.mq4   3 KB | 664 downloads
  • #3
  • Dec 30, 2007 8:00am Dec 30, 2007 8:00am
The grey line indicating 1.9965?

What do you read from this ? Can someone explain in one sentence what can be interpreted from the Fib 50% line and using the chart that SBrickman kindly posted how to interpret the data to position yourself for Mondays opening?

Personally without looking at the chart, and based on intuition I ve a feeling that by the end of the week cable will be down to 198.75 level if not below

Just my 2cents
  • #4
  • Dec 30, 2007 10:07am Dec 30, 2007 10:07am
No, sorry, I should have said the grey dashed line, halfway between the red dashed (resistance) and blue dashed (support) lines.
  • #5
  • Dec 30, 2007 10:20am Dec 30, 2007 10:20am
I don't know what kind of Fibs are being used in that chart, but they don't look like any Fibs I've seen before.

And, joey, what's the fascination with the 50% Fib line in particular? Fibs contain more lines than just that one, and they are all important.

The easiest way to learn what Fibs are all about is to Google fibonnaci. You'll find lots of sites to explain it.

You could also try the free Babypips school:

http://www.babypips.com/school/fibonacci_who.html
  • #6
  • Dec 30, 2007 11:09am Dec 30, 2007 11:09am
how does your customised fibbonaci indicator work. it looks simple to me. will you be kind enough to explain breifly how you interprete those lines
thank you.
bimbo
  • #7
  • Dec 30, 2007 11:58am Dec 30, 2007 11:58am
Quoting In2Blues
I don't know what kind of Fibs are being used in that chart, but they don't look like any Fibs I've seen before.

And, joey, what's the fascination with the 50% Fib line in particular? Fibs contain more lines than just that one, and they are all important.

The easiest way to learn what Fibs are all about is to Google fibonnaci. You'll find lots of sites to explain it.

You could also try the free Babypips school:

http://www.babypips.com/school/fibonacci_who.html
I think this is what they represent.
Attached Image
  • #8
  • Dec 30, 2007 1:13pm Dec 30, 2007 1:13pm
If you want to get technical about this 50% isn't a fib number at all.
  • #9
  • Dec 31, 2007 1:19pm Dec 31, 2007 1:19pm
Quoting smjones
I think this is what they represent.
Thanks Scott. I don't know about you but I find it hard to read that way. I like the "traditional" style myself.
  • #10
  • Dec 31, 2007 1:19pm Dec 31, 2007 1:19pm
Quoting philmcgrew
If you want to get technical about this 50% isn't a fib number at all.
Good point, Phil.
  • #11
  • Dec 31, 2007 6:54pm Dec 31, 2007 6:54pm
Quoting joey122mac
I ve got metatrader up and running and have never used indicators like Fibonacci to determine which way the market moves

I m willing to give it a try so can someone please explain how to get the 50% Fibonacci line up? And secondly what it means and how to interpret it

I use Volumes / Moving averages and charts top determine daily trading patterns but I m keen to try other alternatives and lear from others.

Does anyone know?

Thanks
I suggest you apply common sense to how to interpret the 50% level. Think of it this way if there is a nice car you like and the asking price is 100000 dollars. You might consider it a bit high but if the salesman offers you the same car for 50000 dollars, tempting. It is a nice round number, if you ever have access to some marketing studies you will notice that there are certain numbers that attract the attention of people and 50 is one them. 38.2 or 61.8 are not among them. It is psychological nothing else, just like in the market they sell bananas at 0.99 dollars rather than 1.00 dollars. It is only 1 cent difference yet it sells better at 0.99 than 1.00 dollar. Do not forget common sense.
  • #12
  • Dec 31, 2007 8:01pm Dec 31, 2007 8:01pm
Right, it's a Gann thing.

Quoting philmcgrew
If you want to get technical about this 50% isn't a fib number at all.
  • #13
  • Jan 1, 2008 8:59pm Jan 1, 2008 8:59pm
Quote
I don't know what kind of Fibs are being used in that chart, but they don't look like any Fibs I've seen before.



Quote
how does your customised fibbonaci indicator work. it looks simple to me. will you be kind enough to explain breifly how you interprete those lines

They are intraday fibs.

The lines are plotted at the 0, 23, 38, 50, 61, 77, 100 levels based on the high and the low. Just basic stuff.
  • #14
  • Last Post: Jan 1, 2008 9:08pm Jan 1, 2008 9:08pm
50% is the mid point between a swing high and swing low. Intraday or daily/weekly timeframe.

Nothing magical about it. With other confirmation and an entry setup any old number, fib-related or not, will work.

I personally watch the zone between 50 and 61.8%
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