Fibonacci Indicator? Is it a big Joke?

Attention ::: "It's my personal opinion about this indicators as a Forex trader"

Lot of traders "friends" always asking me why I don’t use Fibo indicator … the answer is simple … why to follow a setup of lines invented by an old mentality “Fibonacci” … this indicator is only for marketing, market never did respect these levels

0, 1,1,2,3,5,8,13,21,34,55,89,144 … in the past an old indian mathematician got an idea of skiping numbers cos he was lazy in calculations ... and here we are, we endup with Fibonacci numbers

In the Fibonacci sequence of numbers, each number is the sum of the previous two numbers, starting with 0 and 1. This sequence begins 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987 ...
So let’s study the reasoning how this idea of calculation did start, with our lazy old indian mathematician who wanted to skip numbers ...

0+1 = 1
1+1= 2
2+3= 5
5+3= 8 …

and we end up with the great fibo indicator “what a joke”

Leonardo Pisano “Fibonacci” he took this idea of reasoning from the Hindu-Arabic numeral system, this method was simply good for bookkeeping in the years of 1150’s as they didn’t had calculators …

So why all this noise about Fibonacci in Forex in 2011? we don’t do bookkeeping on our trading accounts? also the market is alive and it's not a stock in a warehouse to use mathematics on charts ...

The answer will be, fibo is only for marketing, marketing, marketing … yes Forex marketing, a new trader come to the Forex arena knowing nothing about Forex … a professional trader “professional marketing trader” will start explaining indicators and calculations … the best jock of all is the Fibonacci … all Forex forecasts are based on predictions, same is astrology … and we all know how much women like astrology ... trying to know the unknown of the future hahaha

Predictors use the weakness of human to make them live in marketing hallucination "astrology hallusination or in forex Fibo hallisination" saying the market move according to an indicator as the “Fibonacci” and respect this levels …

Let me tell you in my 5 years I never seen the market respecting any level of Fibo … the Forex market is a wild market in most cases don't respect or follow any indicator at all ... in other words Forex is umpredictibale.

Just the fan's of Fibo when the market do it’s move they place Fibo to say market did that according to Fibo Level … buy turning it up or down or adjusting it to fit to there marketing story analysing the past ... when it come to predicting the future 95% fail big as it will be based on pure luck.

Lets base common sense on the Fibo indicator, 1+1= 2, 1+2=3 … till now all answers are present 1,2,3 then the surprise 2+3=5 where the 4 … market pass on many levels with 4 and stop on 40 or 44 even 444 … 5+3=8 … where is the number 6 or 7 … mmmmm on chart we are not in a warehouse doing bookkeeping … market move by passing according to full numbers from 1,2,3,4,5, … till 100 and so on ... i never seen the market skiping a level on chart.

Lets go deeper with Fibo "the hindu-arabic numeral system" stoled by Leonardo in the past and known under his name as Fibo ... It's simply mathematics … meaning all mathematicians will be great traders … but in forex you can't calculate it as 1+1=2 ... as the options how the market will move is open wild on both ways up or down

From 3 years i met a trader who is an engineer … he say he do chart engineering … I wonder if in life he will do foundations in the sky and build down a building ... shorting the sky … well charts moves is based on human judgment … there’s no natural law on the chart to respect always same as in nature for example gravity … cos there's no gravity on charts ... if one big player start shorting the market and the market go down, simple as that …

Big players know all the marketing tools and all ways used by traders ... also they challenge you to publish them always ... for after to push the market in one way and to let all indicators approve a move direction … then surprise surprise market went the other way …

When the market change direction the best i like is when all professional traders voices start going on TV's and online websites ... saying market will go on the other way changing all the consept of the yesterday study … putting a new Fib levels

If you watch closely Forex predictors "Videos analyzing the market" ... in most cases they will endup asking them selves and the audience questions ... where the market will go? by saying ... it's clear on chart? dose that make sense? it will go down ... where it will go or up or down? ... well if the market will go up or down, that is the big question all traders want to know.

Briefly all chart indicators are simply used for marketing, marketing, marketing ... with time a professional trader will trade based on a naked chart or using simple indicators which calculate the trend direction and when the trend change direction to be aware what's going on in the market … just i wanted to write this article about Fibo indicator cos many lately was giving lot of importance to this big Joke indicator making it the most funnier indicator in Forex which always make me laugh when I read studies based on it.

Be Wise Traders & Happy trade everyone.

haha it is so funny. haha.

haha same reason why people use round numbers. haha does price haha respect haha it? haha.

same reason people respect support and resistance haha. does price care about what you think? he laughs at you haha. but because a lot of people believe it then it becomes a self fulfilling prophecy.

hahahaha.

if my account was large enough to move the markets, and i belive in fibonacci then it works. I dictate how prices move after all so what I think is the right thing. Haha.

hahaha nice reply, and now you know all about indicators as they simply calculate the past and big players hunt traders all the time using what indicators preach

always remember to trick the tricky you need to be wiser then the tricky ... always keep in mind and ask your self what big players will do now ... if you watch charts closely you will see always the market surprise traders ... yes so true the market reward those ones who think out of the box during setting up there trades.

also trading is all about prediction, this is why astrology forecasters endup with so much indicators for marketing reasons ... yet fibo is the most funniest one lol

round numbers are more realistic cos it's been used in all marketing ... like you see for sell 99,99$ instead of 100$ cos client will see it good deal ... round numbers is about psychology.

support and resistance is about following the market price action and have some reasoning ... but fibo indicator is a total scam lol and a huge joke lol

happy trade

hello Sir prochartist,
who are the people u saying giving it a lot of importance lately?
what if it worked prior your 5 year experience?
who told u Fibo indicator are lines?
if the market doesnt respect Fibo all the time, does the market respect any thing all the time, every single time?

if u think Forex is unpredictable, then why are u trading? why 'waste your time' for 5 years? u dont make logical sense. incoherent post.

The market is extremely good about going to precise fib levels, except you don't know which one it will go to. That is my only beef about fib levels. You go long at the 38.2% fib level, but the market decides it wants to go the 61.8% fib level.

If used correctly, fib studies can be very useful. If you try to overuse it, you may be slightly disappointed. In a highly leveraged market like FX, if your guess at a 38.2% fib level goes to the 61.8% fib level, it could cause some serious problems with your floating loss. That's why I don't use fibs as part of my trading plan.

Just out of curiosity ,for the thread starter, How on earth did you even get a vouch and who vouched for you?

If you dont and cannot use fibonacci ratios(mind you, not numbers) to determine and make profitable decisions then thats you, you are free to use whatever you like or want to use, but going on to start a thread just to diss one of the strongest analytical piece not only in the trading world but in all works of life and nature, is a SHAM and shame on you, i bet your trading account will speak volumes about your thinking faculty.

Once a gain, how the hell do people get vouches here? from cronies i suppose, well i will never be interested in any vouch from likes here, you can all have your vouches and shove it where the sun never reaches..

yup market don't respect Fibonacci and i agree on that...

maybe the point of this thread is to get people to post, maybe thats why you see so many empty-headed threads , well this is my last post here, i am not in the mood to lecture or teach any lazy minds as i not a teacher neither a mentor as it seems that the reason behing this thread is to get volunteer to take the hands of a bunch of slow learners to teach them the ropes, if so goodluck to you. This is my last post here. Bye and enjoying trading nevertheless.

Nobody better talk about my Fibonnacci!!!!!! It's in the plants, the stars, hell look at your hand dammit!!!!

The truth is that fibonacci, in all of its scientific reasoning, i.e. "golden ratio", has absolutely nothing to do with trading or finance in general. However, as we know, it works under the heading of a self-full filling prophecy in regards to trading. If enough believe in it and act accordingly, it "self full-fills". The problem is that these numbers will be different according to time frame and particular movement you are looking at. So the next step is to look for confluence on different charts, i.e. a 38 on a daily, a 62 on a 4-hour, and a 50 on an hourly happening at the same time. Then .... the probability goes up. However, keep in mind it is only because enough traders saw what you saw and acted on it. But as has been said, it's all about marketing. Most traders look at what they falsely believe to be "constants" when they should be concentrating on "variables" in the market and respond accordingly.

Hello supreme chaos i like your name

Forex marketing people give importance for fib as they want to fool new traders and make them open accounts or let who have big accounts expose big trades in the market ... by trying to convince them with studies based on fib hallucination

before 2008 market was going up on eurusd chart for example respecting the trend .... yet after 2008 int crisis market is like wolves eating each other alive ... no indicator is working fine ... and in that time where fib show clearly that it's a bit joke.

fib levels are not lines they are simple mathematics for warehouse used by indians when there was no calculators to use ... in forex do you see a mathematician making a fortune the answer is no so forex is about personality and performance.

yes the market respect the 1h chart and always play between fractals, fractal indicator is based on a strong theory in all nature you find fractals ... as everything is based from small similar parts and i agree that fractals is the most powerful indicator in forex ... yet no respect for many indicators who are for marketing only and fib is the biggest joke of all

so true, those who use fib use it to make studies about the past showing where the market stopped then put the fib on it ... yet in the future always they endup adjusting the fib levels ... where i ask a big question, most important is to make profits in forex not to be fan of indicators we are not gamblers here ... we are investors

First of all calm down, i will not rage anger on you same as you did, cos i strongly believe in human rights and the right for anyone to say whatever they want ... just all i m asking to respect my opinion same as i do respect your opinion ... and in your future replies don't attack my person ... are we clear ... cos i don't want to enter in childish fights especially online from posts ...

It's clear you are under the fibo hallucination ... indicators are like drugs ... i seen many traders who love there systems and formula "cos they use it for marketing" even they lose money all the time from these formula ... if fibo is making for you money use it ... yet support and resistance is more important then fib ... also it's an old fashion way of mathematics so rusty ... and all it say that these numbers are respected in all nature ... i can assure you not one thing in all life is 100% similar to the other and each nature, each plant, each human is unique in it's self ... build your understanding to life and to forex to be a good trader ... and first step to do that respect other opinions ...

i got a voucher cos i know what i m talking about and i m 100% honest trader who want to share what is forex in full transparency especially with new ones to let them avoid forex predators like you

You are a wise trader, and thanks for your reply ... best of luck in your trades

the goal of all my teaching is to give forex honesty, i would love that you stay here and prove i m wrong ... we traders our goal is to make money ... and we all are here to make money ... so instead of been negative ... share your forex experience ... in all transparency ... we live in a time where all forex traders mentors forecaster's lie all the time ... life did teach me that 100% honesty in life is the only way to live ... and this thread is my honest opinion about fib indicator ... study chart following this indicator with full transparency you will see i m right cos in forex 2+2 = might be 4 pips down or 4 pips up ... there's no mathematics formula in all earth to know what next in the market ... so fib is only a big joke used for only marketing Forex reasons ... anyway wish you all the best in your trades ... if you can beat forex following fib i will be first to salute you

Thanks ido, it's nice to know on this website there's people who truly believe in the right of speech ... if we all agree together in forex market will go in one way always ... yet forex show clearly how much human are contradict when it come to go long or short ... this is why always you will see traders who like a indicator or don't respect an indicator ... as for me the biggest joke is fib

hahaha look like i made all fib lovers angry ... what i can say to you look closely to your right hand and your left hand ... you will see difference in size ... or look to your eyes always one side if the body will be stronger then the other ... in other words not one eye is 100% same as the other ... each form in this life is unique no matter how much you will work hard to make something similar ... impossible ... in forex market is alive ... it's painting it's own story on chart ... and no one know what next in the market ... be a brave trader and enjoy the ride ... and trust me you can invent a better system then fib by following support and resistance levels ... you have a brain ... start using it ... instead of adopting old fashion rusty way of mathematics thinking

wish you all the best in forex

100% i agree with you ... thanks for the reply ... and wish you all the best in your trades

Fib levels are measurements traders use derived from past historical data, much like pivots, or targeting measurements like doubling ranges, or H&S patterns from the neckline.

The problem with trying to equate Fib or any measure into exact mathematics regarding price levels in forex, involves the way the market is structured. You see a specific price from your broker, in real life that price is a shaded average your broker quotes you and is drawn from a multitude of banks all quoting close but different bid/asks on various amounts.

Then add into the mix, structured price manipulation by brokers and banks and your exact price levels go out the window, although tradeable interest may be seen at a desired price level..... the ability for every trader desiring entry/exit at that level may not be (almost guarantee it) obtainable.

Just because price fails to turn at an exact level does not disqualify the traders intent.

fwiw,

Thank you fwiw for your words of wisdom about forex ... and thanks for sharing it ... forex is simple a tricky game and you need to be a wolf when you trade or wolves (banks & brokers) will eat your account ... wish you a happy trades always