Learn How to Crack the Fibonacci Code in 3 Simple Steps | Forex Factory

  • Learn How to Crack the Fibonacci Code in 3 Simple Steps

    From dailyfx.com

    Talking Points - Use Fibonacci tool by connecting the last swing low and last swing high to display 5 possible areas of support - Look for price to turn at one of these 5 main levels before entering a trade for the best possible risk to reward - Place a protective stop below next Fibonacci level and a limit at the 0.618 or 1.000 extensions Have you ever seen a strong trending move in the market and wanted to be part of it but did not have the confidence to enter the trade? Have you ever seen price just stop at a certain part of the chart and then turn around? If you answered “Yes” to either one of these ... (full story)

Comment Options
Mingary
Oct 10, 2013 4:43am — Edited
Permalink
"Look for price to turn at one of these 5 main levels before entering a trade for the best possible risk to reward "


Like any lines / levels that you can draw on your charts (Gann, Elliott, S/R, Fibonnacci, trend lines ..) it's always so conforting to believe there is another "level" that will save your losing trade.
Reply
Mingary
Oct 10, 2013 6:43am
Permalink
Quoting Guest
^^ I could give you a Ferrari. That does not make you the world's fastest driver.

Just because these lines / levels does not work out for you does not necessarily mean that they are useless.

Good luck and trade well.
The only reason they seem to work at all - same for all of TA - is due to proper risk management.
Reply
Spreadbetter
Oct 10, 2013 6:44am
Permalink
What is there to crack in a cracked self fulfilling prophecy that you'd have to be on crack to think works every time? Add into that mix that you'll see folk using Fibs to plot a supposed retrace on a 15 minute, 1 hr, 4 hr chart, versus daily or weekly TFs...

Quoting Guest
The only thing I can't "crack" about Fibonacci is where this 127% (or 127.2% for others) comes from... I mean everybody mentions it and at times seems to be respected but I can't find anywhere a rational explanation/mathematic calculation... tia
Reply
Trader#56FD
Oct 10, 2013 3:46am
Permalink
The only thing I can't "crack" about Fibonacci is where this 127% (or 127.2% for others) comes from... I mean everybody mentions it and at times seems to be respected but I can't find anywhere a rational explanation/mathematic calculation... tia
Reply
mgoran
Oct 10, 2013 4:29am
Permalink
sq root of 1.618
Reply
Trader#CD6B
Oct 10, 2013 6:15am
Permalink
^^ I could give you a Ferrari. That does not make you the world's fastest driver.

Just because these lines / levels does not work out for you does not necessarily mean that they are useless.

Good luck and trade well.
Reply
  • Story Stats