Quote:
Originally Posted by kagein
morning guys, (well its morning over here  ) isn't uncanny the way the market responds to fib' lines, they don't always hold, but so far i would say a good number of the trades I've made 80% or so, have retraced on a fib line as opposed to psychological support or resistance. Given that the major players in the market aren't looking to make profit but rather stable their economies, price should pay no attention to the fib' lines. Or am i wrong, do speculators control the day to day happenings of the market whilst central banks step in sporadically correct price when needed? |
Glad to see you're having some success with them! Well, major players in the markets, and various banks do use Fibonacci analysis the same as we do. There is a reason that buying and selling power steps in at these key areas. As far as speculators controlling the movements, I know in the S&P500 futures, big money moved the market and retail traders just got on for the ride 9 times out of 10. I can comment on the FX markets, though I suspect it would be the same.
Cheers!