Fibonacci Retracements

Hey everybody, I have a few questions on the fibonacci retracement points. Which timeframe should be used in finding these? And And should you use the high/low or the close? Thanx for any help.

I would use highs and lows, however, the accuracy of this becomes less important when you look for retracement points on larger timeframe charts.

They can be used on all time frames. There are no hard fast rules for what swings you should be using. It would primarily depend on what time frame you like to trade off of. I use fibs on the, 5, 15, 60, 240 and D charts and each chart will use different swings.

The 60min chart may be a good place to start...look for the most obvious swing high and low points. Basically you want to use what would appear to be the most obvious swing points to different traders.

I always use swing highs and lows as opposed to candle closes.

I think there is not time frame restrictions in using them. I usually use them on a H4 chart though. I usually use this time frame to exit my trades. That's why I use Fib on H4 only.

My suggestion to get the best results is to use high/low.

Got it. Thanx alot for the posts everybody.

Have I done it right here then? Price doesn't seem to be respecting the levels.

Dont think of the levels as an exact price, treat it as more of a zone.

It's correct and actually price is testing the 38.2 level right now.
Fibo retracement level they are projection of where the mkt may encounter resist ( or support). Those levels will not hold sometimes market will burst thru them.However fibs are a useful tool.

Apart from retracements, you can also use Fib Extensions, Fib Projections & Fib Expansions. These can be useful for finding profit targets.
The Fib projection tool is included in MT4

Thanks. Could you recommend a certain thread or something to learn about them?

Fibonacci Retracements are plotted between 2 significant high & low points on the chart & Expansions plotted using 3 significant points High, Low & the retracement point.

Both these tools are already available with MT4. The Fib Expansion tool has to be added by right clicking below fib retracement button, Customise and then add the Fib expansion tool from list on the left. You will also find fib time zones. (advice:don't go there).

Projections, Expansions & Extensions seem to get confused for one another. What is improtant is that you know how they are calculated.

The Fib retracement tool with added levels, can be used to provide you with the Fib extensions, which is where price reverses beyond the retracement levels and goes beyond the first point to a fib extension level. Common levels are 0.618, 1.00, 138.2, 161.8 & 200

Fib Projections are levels beyond the second point by fib values multiplied from the first & second points. Again the common levels are 0.168, 1.00, 138.2, 161.8 & 200.

However, during strong trends prices do exceed these levels and can go beyond, you just have to have these levels correlate with pivot levels or any previous strong support & resistance levels.

Fib expansions & Projections are often placed on the same chart together to create what is known as "Fib clusters". levels coinciding provide more strength to that level.

If you "google" each individual term, you will find examples.
Try Babypips.com or forexfibonacci.com, you will get some simple lessons.

I have a simple chart that I made to explain the different fibonacci tools, I will try & find it and upload it.

I personnaly use a Daily bar chart, and only use the 50% mark.

Agreed, although I find the 1 hour timeframe also works well.

I've probably forgotten more about Fibs than most people know.

However, this screenshot is for PeterFm. He knows my point here.

Try this one.That's how I start making profits in forex.

http://www.forexfactory.com/showthread.php?t=50767