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Why do people use Fibonacci in trading?

  • #81
  • Apr 4, 2013 8:12pm Apr 4, 2013 8:12pm
Another cool thing with these mystical, delusional lines, is that when you make them thick, they stick. And when you make them dotted, they fall through easier.
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Time turns trend. - W.D. Gann
  • #82
  • Apr 4, 2013 8:24pm Apr 4, 2013 8:24pm
[quote=ForExtraPips;6576037]Another cool thing with these mystical, delusional lines, is that when you make them thick, they stick. And when you make them dotted, they fall through easier.

Classic!
  • #83
  • Apr 4, 2013 8:34pm Apr 4, 2013 8:34pm
1.5380 Weekly Pivot

And I never drew a single mystical, magical, erroneously mathematical ..........

(don't take me too seriously, I'm just the Joker, ya' know)






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When the Joker is in the deck.. fear not and play it well
  • #84
  • Apr 4, 2013 9:02pm Apr 4, 2013 9:02pm
I do believe that the Fibonacci ratio work. However, it depends on how you do it, or in other words, how you apply that ratio in your strategy. And... obviously we know that, the more people believe in Fibo, the more correct it is. That's how the market works
  • #85
  • Apr 4, 2013 9:38pm Apr 4, 2013 9:38pm
Quoting Slim Buffett
According to Larry Williams, author of Trade Stocks and Commodities with the Insiders: Secrets of the COT Report “Fibonacci retracements are at best a bad tool, at worst a hoax” The report, which is included in the book, found no statistical evidence of the validity of “fibbing”.
Well I be Fibbed ...I agree with Old Slim . Jasus wuts next???
Master your Mind,,,Master the Market
  • #86
  • Apr 4, 2013 9:44pm Apr 4, 2013 9:44pm
Just like whenever you buy something, that has to be put together. But after getting home, you open the box, and find out that it doesn't come with directions. Same thing when you buy a currency. Just put a couple of arrows on your chart, and price will follow the directions. (yes, drinking again).
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Time turns trend. - W.D. Gann
  • #87
  • Apr 4, 2013 9:54pm Apr 4, 2013 9:54pm
Quoting Slim Buffett
1.5380 Weekly Pivot And I never drew a single mystical, magical, erroneously mathematical .......... (don't take me too seriously, I'm just the Joker, ya' know) {image} {image}

Do you use this equation for pivot points?

Pivot point (PP) = (High + Low + Close) / 3
Play the players, not the cards.
  • #88
  • Apr 4, 2013 11:10pm Apr 4, 2013 11:10pm
Quoting pepesan
I ever read , the Fibonacci ratios (0.382, 0.500 and 0.618) is like planetary motion ratios (0.38877/0.3902, 0.509 and 0.6151/0.6011). The planetary motions may be of great help to traders in predicting the possible outcomes of market prices over a specified period of time. Or maybe you should read about history of the Fibonacci numbers. -------- 123 trading system

What about 0.786 ? This is also a fibo ratio I know.
  • #89
  • Apr 4, 2013 11:24pm Apr 4, 2013 11:24pm
Nighty, night. Sleep tight. Keep your SL just right.
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Time turns trend. - W.D. Gann
  • #90
  • Apr 4, 2013 11:45pm Apr 4, 2013 11:45pm
Quoting Red Herring
What about 0.786 ? This is also a fibo ratio I know.
Without any disrespect, before looking at fibo you should learn trading. I refer to the fact that you asked few hours ago what is a Lot when you open a position.
MT4/MT5 EAs/Indicators/Alerts coder
  • #91
  • Apr 5, 2013 12:23am Apr 5, 2013 12:23am
Why do people use Fibonacci in trading?

many reason:
1)he use fibo in order not too busy to draw a lot of lines
2)he no ability to trade naked
3)someone told him to use it,,and the only one that he knows
4)he uses it to accelerate Execution
5)he used it to the level where he would go in or out or targets will be achieved or at the level where he would give up or at the level where he would reduce the load or increase the load
6) etc,,etc,,etc,,

salaam
  • #92
  • Apr 5, 2013 4:03am Apr 5, 2013 4:03am
Amazing stand up comedy we have here.
Some members writing hilarious posts about fibo tool with no knowledge about it.

Keep posting please, I'm having fun.

Thank you.
Enter Signature
  • #93
  • Apr 5, 2013 4:18am Apr 5, 2013 4:18am
I agree with you Gomes, this is thread is hilarious.
It never gets easier, you just get better
  • #94
  • Apr 5, 2013 5:29am Apr 5, 2013 5:29am
I have just started to learn more about Fibonacci and after some time I will be in position to say more about it. For now I see it's very interesting for me and I spent many hours for this topic and it's pleasure
  • #95
  • Apr 5, 2013 6:36am Apr 5, 2013 6:36am
Quoting gomes
Amazing stand up comedy we have here. Some members writing hilarious posts about fibo tool with no knowledge about it. Keep posting please, I'm having fun. Thank you.
Great if fibo works for you ... like for many traders. But there's one thing you can't deny is the fact that fibo has nothing to do (mathematically) with the market.
MT4/MT5 EAs/Indicators/Alerts coder
  • #96
  • Apr 5, 2013 7:29am Apr 5, 2013 7:29am
Fibs, like pivots, Elliott and S/R, are part of the collective markets ongoing self-fulfilling prophecies that occur everyday to guesstimate potential profit taking areas or trend turning points. Were they not so widely used, they would have little relevance. Because they are, their impact is relevant and at the very least Pavlovian. Such is the herd mentality of any group.

Whether you use any or all of them or not, they factor into a very significant amount of trader decision making, both retail and institutional, which effects the collective and subsequently impacts the markets. Traders take solace in their quatifiability and believe they produce a statistical edge which makes them an actionable component of trading.

The belief and resulting action is all that is required. If enough traders believe and take action, volatility and momentum ensue.

Be skeptical, but not dismissive. All of the above are the reason markets move.

dcginc.
  • #97
  • Apr 5, 2013 11:43am Apr 5, 2013 11:43am
Quoting dcginc
Fibs, like pivots, Elliott and S/R, are part of the collective markets ongoing self-fulfilling prophecies that occur everyday to guesstimate potential profit taking areas or trend turning points. Were they not so widely used, they would have little relevance.
^We all lack the knowledge needed to dispute/verify "potential" universal givens. Fibs and Elliot are not like Support and Pivots. Grouping these is too broad, imo. I like your overall point, and I think there's merit in there, but you must agree to the following: You have NO IDEA whether their relevance is self-fulfilling or spatially universal in nature.

Fibs (if you buy into the theory) are valuable because of inherent spatial reasons that govern development.

A clear Fib response today!
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  • #98
  • Apr 5, 2013 6:38pm Apr 5, 2013 6:38pm
GUESS WHAT GUYS!!!? I just applied for a job at the local bank and I GOT IT!

My job is to press a BIG RED BUTTON every time that prices come near the 61.8% Fib retracement level. Luckily I only have to monitor this level, and someone else has the job of watching for the 38.2% retracement. I say 'luckily' because if price is allowed to break through the level we are tasked with watching then we get fired. We simply can NOT allow price to break these levels without alerting the bank beforehand so that they can quickly send some orders into the market and make sure that price 'respects' these 'self-fulfilling prophecies'. The banks are here to ensure your fib lines work!

It's a tough job, but you can rest-assured that the 61.8 level is well-protected by me and my big red button! The 38.2 level, on the other hand.... hmm not so much. I saw the guy they hired for that job and he was missing an arm. That obviously means he is 50% less-likely to hit the button according to my math!
Congratulations ScalaFX for coming out of the closet!
  • #99
  • Apr 5, 2013 7:15pm Apr 5, 2013 7:15pm
Quoting Tradedly
^We all lack the knowledge needed to dispute/verify "potential" universal givens. Fibs and Elliot are not like Support and Pivots. Grouping these is too broad, imo. I like your overall point, and I think there's merit in there, but you must agree to the following: You have NO IDEA whether their relevance is self-fulfilling or spatially universal in nature. Fibs (if you buy into the theory) are valuable because of inherent spatial reasons that govern development. A clear Fib response today! {image}

Sorry but I don't see any "clear fib response". The monthly R1 PIVOT
is at 1.5358, the weekly R2 PIVOT is slightly below

The actual "bounce" has been from (near) the weekly S2 support (PIVOT)
@ 1.5015

Verify my ramble with this easy-to-use pivot indi. It's only $100 and when you send
it to.............. OK, it's a freebie if you don't already have it
Attached File(s)
File Type: ex4 Auto Pivot2.ex4   16 KB | 303 downloads
When the Joker is in the deck.. fear not and play it well
  • #100
  • Apr 5, 2013 7:18pm Apr 5, 2013 7:18pm
Quoting nubcake
GUESS WHAT GUYS!!!? .... The 38.2 level, on the other hand.... hmm not so much. I saw the guy they hired for that job and he was missing an arm. That obviously means he is 50% less-likely to hit the button according to my math!
Great story........


I like it
When the Joker is in the deck.. fear not and play it well
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