Anyone Use Fibonacci?

Hey,

Wanted to know if anyone uses Fibonacci Fan, Retracements, extensions, etc in their trading?

If so anyone wanna help me out on strategies? I have been working on something but am wanting to adapt some others into it and start testing in live markets. anyone that can help?

Dude, check out the James16 Chart thread for one!

Anyway, lots of us here use fibs.

if you draw 5 random lines across a retractment, you will bound to hit the price at some point. Price is your only the reliable indicator. maybe momentums.

To put it in perspective, you have to have an understanding of the market, and its general direction first. FIb level can only give you a objective profit, stop loss level. never use it as your entry techniques.

hi,you can check the www.fibonacci.com,it is very easy to lern alot from this site,good luck

fibos = astrology
elliot = astrology

LOL, Is this good or bad?

I know where you are coming from ... It is more than astrology though, it is creation ......

Well I see the point of course. However. It is a self fulfilling event and has been very good to me in determining profit projection areas... Now Elliot theory I really am not an expert so I cannot say.

Hmm, Maybe I should try an astrology indicator... Do they have that in MT4?

I thought Fib's meant More F#$&^@ Rabbits. Need more carrots.

Seriously,

Fibs are real but very complex.

I'm sure niceguy777 would like to hear from you as I think Fibs are his specialty. His web addy is in his signature I believe.

I am not a member or affiliated.

Fibonacci lines are the secret sauce of the pros...

Darn it, our secret is out.

Based on my research on the Forex Pair, Fibonacci Retracements work great on some forex Pairs, but you need to determine which ones work best, and have good profits targets which are almost always met.

And ignorance is Bliss !

Three successful historic Fib Traders: Joe DiNapoli, Larry Pesavento, Neil Hughes. All still active. None of them draw random lines.

On the other hand price IS the best indicator of price.

Lou

hey Lou, sorry to bust your bubble. if Fib is as magical as all these grail sellers claims it to be, why bother selling these books for a profit? why not just sit home and make millions. Fractal geometry has a certain correlation with the market, but it is way beyond me or your expertise. Try read up some of the books from Hurst.

If you have read the book "fooled by randomness", you will understand Fib, or any other indicators are nothing but masturbation, a little reassurance for us tradres in a volatile and unpredictable markets. Only thing matters is price and human emotion. When you take a trade, try to gauge what others are thinking. then you are on your way of becoming a better trader.

moneydude, I have read Hurst, Gann, Cowan, Bayer, Ferrera, Gilmore ... blah blah blah ... as well as fooled by randomness (which by the way is an active options trader writing a book on a theory... where is the difference?) ... and I think your view is perhaps a little lopsided. Granted some peoples view on fibs is just as lopsided, but to say fibs are no better than random lines drawn on a chart is to fly in the face of scientific research and what is clearly shown every day with market reaction to these levels, both retracements and extensions, self fulfilling prophecy? ... not in my opinion, after all when they were first successfully used (as they would have had to be for it to catch on), there were not the numbers to make it self fulfilling .. just my theory ...

Sure I could draw 5 random lines on a chart and one of them may be hit, but if I take those same 5 lines and move them day to day in the same proportions will the continue to be hit as fib levels are in both time and price?

The fault is not whether the golden ratio exists in nature and has an effect in the various levels of life, it is traders trading them with blind faith, ignoring, as you say, price action .... just my 2c, I don't base my trades around fibs, I do base them around the natural order of things, but they have a place in my opinion in modern technical analysis.

Akuma, that is the point i am trying to get.

HI Highasakite.

I am currently formulating my strategy using fibs along with a couple of smooth MA's.

The results so far is encouraging but it is still to soon to say that I have a winner.

I use the daily charts to determine the trend and then I use the 4hour charts to draw my retracement lines.If the market retraces far enough I then use the 1hour charts for my entries along with a 5 Smooth MA on the close and a 6 Smooth MA on the open.Stoploss below swing high or swing low.

It is not the holy grail but it looks promising.

Cheers

Pipfetcher,

Let me know how this all goes, as i'm very interested in trading a similar style. Working on my strategy now.

Cheers,

<TABLE class=tborder cellSpacing=1 cellPadding=6 width="100%" align=center border=0><TBODY><TR title="Post 95156" vAlign=top><TD class=alt1 align=middle width=125>HighAsAKite</TD><TD class=alt2>Pipfetcher,

Let me know how this all goes, as i'm very interested in trading a similar style. Working on my strategy now.

Cheers,
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Sure thing buddy.

I'll keep you up to date.

What are you working on ?Maybe we can help each other out.

Just remember that no system is perfect and that money management is as important as a good system.(it's probably even more important)

Look forward to hearing from you.

Cheers

Fibo lines work. If they aren't working for you, then it might be a lacking of either skill, knowledge or experience. Fibos and especially fib clusters form important pivotal areas that can and will pivot price if they hold and can make for small stop high target setups with good r/r or simply aid in finding places to take profit.

Even if YOU don't believe in them, the fact that the majority of analysts do, makes the market respect them, it's as simple as that. Self-fulfilling prophecy, as has been stated.

If you are interested about finding out more about fibos and trading with them, someone who has his sole (profitable) trading system based on this and has free tutorial videos on the site is Mark Braun. Not knowing market symmetry or ignoring fibos usually ends with you saying "huh?!?! Why did the price suddenly reverse here? I don't have anything on my chart there!"

If you're curious, watch the intro video at mjbraun.net it has some nice stuff and was quite intriguing for me =)

You can add the .786 and 127.2 to your fibo tool in MT4 via it's property page when editing it under object list.


Best of luck,


SeekingLight