Arguably, all perception is selective, and subjective. I'm not quoting a study or survey about how many bank traders use Fib tools and to what extent, if they do, so my statement that I've heard a few say they don't have time to use it at all is perceptual, yes.
The rest of what I say is not perceptual, but logical deduction:
Ralph Elliott's work in the 1930s and 40s, as well as research by Elliott Wave International, since the 70s till present, demonstrates that there exists an established principle whereby stock charts exhibit Fibonacci ratios between particular waves positions. This is the case now, and Elliott's initial discovery of this fact in the 1930s shows that this was the case back then - when traders and speculators were not using Fib tools.
So, demonstrably, without using Fib tools market participants repeatedly trade price to certain ratios of preceding price waves, and to certain ratios of the larger price wave that would eventually unfold. If someone isn't familiar with this phenomenon, then they should do their homework. The work of Elliott, Prechter and Gann is freely available.
The logical deduction is that the tendency to adhere to Fibonacci ratios originates in the mind/psychology of the market participant. Additionally, since all participants are interacting with the market independently and asynchronously, to produce Fib geometry in the chart, we can infer that the market collective itself has a super-psychology that tends to Fib geometry.
So, it stands to reason that the bank trader, being just another market participant, with psychology and subconscious impulses, helps tend the market to certain ratio levels.
Does the idea repulse you?
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