I was first introduced to Fibonacci levels when I read a trading system by Quantum Global. Basically, if there is a "wave" greater than 40 pips in height, you were supposed to play the Fib levels, and filter your trades based on RSI.
I backtested the method for a year or two, and found that it won 50% of the time.
I could flip a coin and have the same results... 50/50.
I realize many traders swear by Fibs.... and yes you can find Fib "patterns" in charts a lot. But how valid are Fibs really? My problem is that I believe too many traders are playing Fibs in different timeframes... consequently a lot of noise in the charts.
Oh and I firmly believe the banks are not trading to make profits.... they are buying Forex future contracts to hedge their country's economies based on fundamentals.... they are exercising the contracts and not selling them for profit. That's why price action is my bread and butter for now.
I backtested the method for a year or two, and found that it won 50% of the time.
I could flip a coin and have the same results... 50/50.
I realize many traders swear by Fibs.... and yes you can find Fib "patterns" in charts a lot. But how valid are Fibs really? My problem is that I believe too many traders are playing Fibs in different timeframes... consequently a lot of noise in the charts.
Oh and I firmly believe the banks are not trading to make profits.... they are buying Forex future contracts to hedge their country's economies based on fundamentals.... they are exercising the contracts and not selling them for profit. That's why price action is my bread and butter for now.