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Using fibonacci

  • #1
  • First Post: Dec 19, 2009 4:04am Dec 19, 2009 4:04am
Hey everyone

Have recently started forex trading, using an intraday stratergy and another end of day stratergy. I am just wondering if anyone has any advice on how to accurately plot Fibonacci retracements on my daily chart ie where do you start and finish the retracement? From the start of the most recent strong run/trend (which may be months long), or the start and finsish of the most recent rally upwards in a long term uptrend for example? I hope I have made that clear? Any advice is well received.
  • #2
  • Dec 19, 2009 4:44pm Dec 19, 2009 4:44pm
To each his own, mate. You just have to try each and every idea you got in the beginning, see which fits you, then stick to it.
  • #3
  • Dec 19, 2009 4:50pm Dec 19, 2009 4:50pm
Quoting calebmsky
Hey everyone

Have recently started forex trading, using an intraday stratergy and another end of day stratergy. I am just wondering if anyone has any advice on how to accurately plot Fibonacci retracements on my daily chart ie where do you start and finish the retracement? From the start of the most recent strong run/trend (which may be months long), or the start and finsish of the most recent rally upwards in a long term uptrend for example? I hope I have made that clear? Any advice is well received.
That depends on what retracement you expect to catch. If you are for the short-term opportunities then use the retracement plotted from the start of the recent short-term trend, if you are for long-term opportunities - use longer trends.
  • #4
  • Dec 20, 2009 4:43am Dec 20, 2009 4:43am
Thanks for that guys. Pretty straight forward really. I'll play around with a few things.
  • #5
  • Dec 28, 2009 12:02am Dec 28, 2009 12:02am
I once heard of someone asking this questions in a seminar. The answer given by the speaker is that Fibonacci retracement lines drawn using a longer trend is more reliable.

I have been testing and trying that on a longer trend now, and I found it more reliable to to use it on a short term trend.

Hope that helps.
  • #6
  • Dec 28, 2009 2:39am Dec 28, 2009 2:39am
Quoting InvestMoney
I once heard of someone asking this questions in a seminar. The answer given by the speaker is that Fibonacci retracement lines drawn using a longer trend is more reliable.

I have been testing and trying that on a longer trend now, and I found it more reliable to to use it on a short term trend.

Hope that helps.
A trend is a trend. Short term long term is just a way of throwing in the time frame variable.

for example, 4H could be short term for me if I was a weekly trader and long term for me if I was a 5 min trader,

so fibs on the monthly for a 5 min trader would be crap and fibs on the 5 min for a daily trader would be crap.

Fibs work more on short term or more on long term trends is ridiculous, as long as trends retrace and there are at least 6 lines in its way the fibs will work.

g.
I believe . . .
  • #7
  • Jan 4, 2010 11:28am Jan 4, 2010 11:28am
Avoid the short swings on any chart when drawing your fibs. The longer swings are more reliable. Don't be afraid to pull multiple fibs, it's a good way to see which one the market is following.
  • #8
  • Last Post: Jan 4, 2010 3:30pm Jan 4, 2010 3:30pm
Quoting ghous
A trend is a trend. Short term long term is just a way of throwing in the time frame variable.

for example, 4H could be short term for me if I was a weekly trader and long term for me if I was a 5 min trader,

so fibs on the monthly for a 5 min trader would be crap and fibs on the 5 min for a daily trader would be crap.

Fibs work more on short term or more on long term trends is ridiculous, as long as trends retrace and there are at least 6 lines in its way the fibs will work.

g.
I like your response, very true.
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