In trading, there is no bullshit. You either make money or you don't.
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DislikedHere is a simple way to use a retracement tool (with no fib ratios in sight);
Current range is below previous range, therefore trend is down.
No magical order of nature hocus pocus.Ignored
Disliked
Are fibo levels more frequently accurate in picking reversal points than some of the other levels that I mentioned?
Next question (to those who believe in fibos): does anybody know WHY they 'work'?Ignored
DislikedThanks mate, but there is really no side to take.
Look at a price chart, retracements do not land on fib' ratios.
I said before that I think that fib retracements can be used, but that doesnt mean they are mathematically present in the market structure.
I really get pissed off when people like Waves come and deliberately misinterpret posts and cast aspesions about, "what kind of person" I am.Ignored
DislikedPresumably everybody's agreed that no levels - whether they are S/R from prior candle highs/lows; fibos; pivots; round numbers; trendlines; widely used MAs; whatever - are respected, to the pip, 100% of the time.
Consequently, isn't the important question "how accurate does any level need to be, for it to provide a worthwhile contribution to an overall method that's on-balance profitable?"?
Are fibo levels more frequently accurate in picking reversal points than some of the other levels that I mentioned?Ignored
DislikedNext question (to those who believe in fibos): does anybody know WHY they 'work'?
Is it:
a) expectation of self-fulfilling prophecy (i.e. enough heavyweight traders use them, creating the necessary orderflow)?
b) they provide an 'average' statistical measure of herd behavior (if so, then why fibos, and not some other arbitrary ratio)?
c) because a majority of traders succumb unwittingly to the irresistible forces of nature?
Or is that they merely provide the trader with his own familiar, visual points of reference, or 'road map', around...Ignored
DislikedHi,
Just wanted to ask a question about the value of the study that Jonty has linked to within his post....Ignored
DislikedIf they cannot even understand how Elliot wave works and how fib ratios work within Elliot wave then how can we know that they understand how to use fib ratios properly thus in my opinion it devalues any research they have done on retracements and in the end how can you trust their research when they do understand the basics of fib ratios.Ignored
DislikedHi auxesis, these people have compiled a lot of academic evidence that fibs do not work, so I think it's time to rethink this issue, because this trade I was in this morning on the E/J (long at 124.38, stop now at 124.78) is not based on anything real, just magic and a result of random market actions:
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Please, do not believe any of this fib stuff, they just do not work!Ignored
DislikedGE,
I personally reference fibs on retracements and extensions, they are not the determining factor, but I like to know where they fall. My first mentor thought both axis, price and time, moved to the measure of fibs and I watched that man carve the markets like a Christmas Turkey.
The purpose of my earlier post was to point out that what matters is the individual. When a trader reaches the point that they understand the what and why of their trades, then others opinions about their methods are meaningless.
regards,Ignored
DislikedHi auxesis, these people have compiled a lot of academic evidence that fibs do not work, so I think it's time to rethink this issue, because this trade I was in this morning on the E/J (long at 124.38, stop now at 124.78) is not based on anything real, just magic and a result of random market actions:
Attachment
Please, do not believe any of this fib stuff, they just do not work!Ignored
DislikedI would love to be proven wrong on fibs. Mind to share your stats with i.e 100 trades, using fibs as a main tool ?Ignored