Question for experienced Fibonacci traders

Hi,
I've seen dozens of books and videos, everyone showing the most obvious fibs. You've seen them "Look, this bounces *exactly* on the fib line".
This is as obvious as saying "buy low -here- and sell high -here-".
So basically everyone is an expert of Fibs.

The question everybody asks is "where do I put the low and high points?"
I guess there should be a technique, some, smarter than "get the lowest low and the highest high".
I've seen some threads here, but I haven't found a "set of rules" or system which I can follow every time (even though I'd lose some times).
Any help from a trader who trades Fibs professionally would be appreciated.

Hi..
i am using fib level as support and resistance... i.e.. most of the traders
using Fib level for Their Exit.... not entry... Just try with good entry you may have good return......


thanks..

I'm not the biggest fan of fibs and therefore may not be qualified to answer your question - but I find they can not be ignored.

Retracements in a trend is the obvious use and so we should be looking at swing high/lows.

I am using them more and more as a measuring stick. You can draw them anywhere you like and the more the merrier to practise with. For example they can be useful for calculating retracements on, say, a bearish daily bar. Some people use them off a ma to calculate when to trade off ma crosses.

Just practice drawing fib retracement over and over on a daily time frame. For example find a pair that has been trending down. When it breaks to the upside, you then draw your fib from top to bottom. There is two ways to draw fibs, one is from the top of the candle including the wick to the bottom body of the candle. The other way you draw you fibs from the very top of the wick to the bottom wick. That was the part that confused me in the beginning and look for price action around the 50% - 61.8% double top in that area will produce great results. I want to post some pics to show but don’t know how yet. Take a look at gbp.nzd daily chart from 8.16.10 to 9.13.10 you will see the price action I just mentioned.