hi, just wondering what time frame is best used for identifying fibo levels…? 1 hour or daily???
My personal take, never actively used it, never will. I played around with it a bit and never saw any benefit in it. Although market movements do vary in time, they don’t very as much as a fib tool suggests. People make decisions daily, weekly, monthly… with some variance. Not because it’s 18 periods later than it was when they started.
However if you do subscribe to the belief that they work, in theory they work on any time frame.
can use it to judge resistance and support level…
Can also just use basic candlestick reading which will be 10x more accurate.
It works on all time frames. Less than 30 minute you have to be careful. 30 minute plus works fine. Works best in a trending market. As usual should never be used by itself and the fib tool like any other tool, is not meant to make the decision for you, but to help you when you’re majoring risk.
Some traders start with it on the daily and then look at the time frame below, Personally I found it’s works best in the time frame you’re trading.
thanks to all…
Sounds about right, also look for the most predominant move, don’t try and create a Fib, I mean don’t go looking for them in ranges.
You could also use a first higher low and higher high as the starting point for the Fib and end at the first lower low and lower high, and vice versa.
I find that the daily chart is a great one for fibo
i also think 1 day is fine for identifying…
I use fibo retracement levels quite often to get extra confirmation. Minimum timeframe is 15 min. Movement should be at least 100 pips between high and low. And look price action only between 50-61.8 level
I’m using Fibonacci on daily chart and trading level or sometimes even two below.
Fibonacci and all indicators are designed for use with big time frames. Yes it can be used in smaller time frames also, but with less accuracy. For me, Fib levels 38.2%, 61.8%, 78.6% & 88.6% are the important levels. I use it in daily time frame to locate the max range for day trading.
All of them… Price action is fractal in nature.
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what do you mean price action is fractal in nature?:15:
…1 D1 candle = 6 H4 candles
6 H4 candles = 24 H1 candles
24 H1 candles = 48 M30 candles
Etc…