Fibonacci Retracement Charts

Hi,
Latly I am trading a lot with Fibonacci retracement. And now I am searching and discovering on which timeframe is the best to put fib. retracement and on which swing low/top.
So I was searching the forum to found something about putting a Fibonacci retracement to the charts, but I didnt find anything. So for all fibo fans I suggest that in this thread we attach our charts with Fibonacci Retracement, any timeframes..

I will attach my 4 Forex charts with Fibonacci retracement. And you please comment it and attach yours.

Regards,
scorpionFX

Here is my first question?

Thanks for answers.

Regards,
scorpionFX

I;m a noob but if it was me I would draw from the highest to the lowest on that chart.

The way I have always used Fibonacci is as follows: I draw the levels, and I see if any/most the lines actually acted as support/resistance in the past. If they did, it is likely that the Fibonacci levels are drawn well, and will continue to act as support/resistance. If they did not, look for better levels that do.

Your first graph, for example showed little evidence that the levels provided any support/resistance The price just ignored those lines, and so should you. Your other three graphs were slightly more convincing, yet still not perfect (although Fibonacci is rarely perfect).

Also, I would never trade solely based on Fibonacci levels. That is because Fibonacci does not tell you whether the price will bounce or not, rather, it will tell you where it will bounce if it does. So instead, I use them with other systems to find good entry/exit points.

First I want to thank you for the comment and I want to ask you which indicator or tehinque you use for entry and exit points?

It's extremely hard to know where exactly we should place the fibonacci retracement swing high and low.

I think you can give the same chart to two "PROs" and they will draw totally different fibo retracement.

That said, with dif. fibo retracement, the picture changes dramatically from trader to trader.

Support and Resistance is in the eye of the beholder. I am still learning but what I can see till now, is that there is no such thing as "objective" support and resistance. If I'm wrong, someone correct me, and give me examples of charts where support and resistance cannot be discussed, because they are 100% secure at x level.

If you'd like to know, here's a short summary:

Personally, I have been trading "divergences." I look for divergences in MACD and Stochastics.
If you are not familiar with divergences, that means in an uptrend when the price is making higher highs but the indicators are making lower highs, or in a downtrend when the price is making lower lows and and the indicators are making higher lows). These often predict large retracements about to occur

some General confirmations and rules I use:
-I wait until the indicator or price closes in the direction I will trade
-I trade on 1M, 5M, and 15M charts, depending
-Often I see this happening when the price is approaching a Fibonacci level or other support/resistance level, which is extra confirmation. I use these lines for entry/exit
-I wait until RSI is above/below 70/30 during uptrend/downtrend. (I do break this rule sometimes)
-I only trade during volatile market times (not late on fridays, best when two sessions are open at once)

So as you can see, Fibonacci is only a small piece of my general strategy.

I have been using Fibonacci Retracement from time to time. My experience tell me that it tends to work better when you use a higher time frame. Using Fibonacci Retracement on a 1 min. chart will not work. Actually this goes pretty much for everything in technical analysis..

how to determine the fib level is support or resistance?

Wrong pic. Sorry. Here see the picture. Does this help?

ok, so that's support. what about to the right one level from the support level. can that be considered as support too since many candles cannot break from it?

Sorry gnomefan,
I am not sure I understand which one you mean?