Fibonacci

[forex_wales]

Hi
Ive a question for discussion. Ive just been watching a video on Fibs where the 38 or the 61 % is being assumed as the retracement level.

Im interested - do you all view this as a psychological level of S/R when you set your trades, i.e do you have the Fibs fan there as the move progresses ready to bail out ?

If the price tests the levels and keeps going then for me its a good entry point, but what happens when when the price hits the 61% ?

Do we have the Fib set up all the time waiting for the psychological barrier to get people bailing out at thesesm levels

Forex wales

[n_aftab]

Hey,

Don’t use them in isolation, the ones that i find work well are the ones that overlap Support and resistance levels, round numbers or pivot points. Looking for confluence adds weight to the levels.

N

[hellogoodbye4201]

Hi
Ive a question for discussion. Ive just been watching a video on Fibs where the 38 or the 61 % is being assumed as the retracement level.

Im interested - do you all view this as a psychological level of S/R when you set your trades, i.e do you have the Fibs fan there as the move progresses ready to bail out ?

If the price tests the levels and keeps going then for me its a good entry point, but what happens when when the price hits the 61% ?

Do we have the Fib set up all the time waiting for the psychological barrier to get people bailing out at thesesm levels

Forex wales

I don’t include fibs in my trading. They can be used and often times the .50 and .618 are used as good entries off of a retrace. like n_aftab said they are more valuable when in confluence with other forms of S/R such as a major resistance at 1.5000 and the .618 retracement at 1.5000 as well. That would probably be a good trade to take. They can be useful but like I said before I don’t use them i my trading and I don’t find them a necessity either, it’s more of a preference.

[mastergunner99]

Price is susceptible to bounce off of any of the levels. And generally when you find price reversing, you’ll almost always be able to draw a fib line that shows which level it bounced from.

Personally, I don’t care which one price bounced off. My personal favorite levels are 61.8 Golden Ratio and the 76.8 Ratio. But that’s mainly as they offer the highest risk reward for the methodology of my trades.

Never trade directly from Fibonacci. Rather use it as a tool of confirmation of price movement that has already occurred. As well, it serves as a great tool to determine take profit levels.

[chizzenpips]

The fibs are a discovery/creation of Leornardo Fibonnacci who, like many other brilliant mathematicians, played with so many numbers 247365/6 till he stumbled upon one of the scientific relationships in nature. He was lucky, his discovery was The Golden Mean.

The 6.18 r/ship and its derivatives appear like clockwork allover the wave patterns – the Elliot Wave patterns. Adjacent waves display a percentage r/ship with each other, like 61.8%? Fibbs on charts are thus visual representation of the same. There are three ways that I’m atleast aware fibs should be applied; the most common Fibonacci retracement, Fibbonacci expansion and, Fibonacci extension.

Allow me to do a little back-testing, if only to demonstrate the fibbs in action; consider the G$ d1-timeframe from Aug’09. According to my current wave count for the pair, that would have been a correction of the bearish from all-time high to 1.3500, coming to an end at 50% retracement. An astute chartist with the method would have tried to discern the actionary 12345 from the corrective abc pattern. In Nov’09, the bearish trend resumes, and the chartist is once again convinced of the return of an actionary impulse wave bullish any degree, and he wants to set targets for the trade(s) he is in.

1). On mt4, go to the normal fibb tool and set its parameters for 0.236, 0.382, 0.5, 0.618, and 0.786; that is our retracement tool. From 16th Nov to Dec’09 is marked minor 1 (getting to that label is beyond the scope of this post), drag the tool to span the wave so as to prospect the depth of correction for upcoming minor 2 – turns out 61.8%. Is it just a coincidence that it had to be smack on one of our levels, the most significant? See chart 1.

Now that minor 1 and 2 are done, Chartist-Astute would know to look for minor 3 short, right after 2 ends as confirmed, with somewhere to hide the StopLoss.

2). Go to insert>fibo>expansion and place it on chart, set 6.18, 0.618, 1.0, 1.618, 2.0, 2.618, 3.0, 3.618, 4.618…; that’s our ruler for wave expansion. Place it to span our minor 1 with long arm & minor 2 short arm, this time to prospect for the next wave-target bearish. Watching for price action at our levels, it shouldn’t surprise us to be at 1.618.

3). Go to the fibb and set 1.0, 1.272, 1.618, 2.0, 2.618, 3.0, 3.618, 4.618…; that is our extension ruler. Assuming we used it at the scenario above, span minor 1 range, watch for fib levels; a less significant 2 times extension though, for wave 3 end.

The fibbs should sort of give us panic areas to watch for, to avoid messing up the trades with too much discretion in no-panic price range? A secondary aspect of the tools to employ is explained in the EW/Gartleys thread in this forum – that of fibbs’ convergence. For instance, see convergences for extension and expansion for same minor 1. There are other Elliot Wave Analysis guidelines to assist the decision, beyond this scope.

After minor 3 bearish, we know there’s a minor 4 bullish coming up, but what form and length we wouldn’t know. So we prospect for its retracement of previous 3. 38.2% retracement of minor 3 span reflects the up-trend, turns out it was wave [a] of 4 bullish ended, the swing-low level at 3 end reflects it again, end of wave [b]. Here, we are faced with a wave [c] minute bullish, how well such a trade turns out is subject to many things. A failed retest of 1.5530 on 26Apr’10 should cue in a short for the next wave(s) bearish, turns out to be minor 5. To prospect for its target is again possible: make the expansion tool to span minor 1 to 3 long arm and minor 4 short arm as shown in fifth chart. For the expansion tool, make it span wave1, then move it as it is to start of 5. Turns out 5 ended at 61.8 expansion of minor 3, 127.2% extension projecting minor 1. We might as well note that subsequent minor A retraces 38.2% of whole bearish int(1), with its sub [c] being 2 times extension projecting sub [a]. After int(A) is int (B) coming up next. Watch for (B) equity with (A), i.e. retest of 1.43, then bullish impulse int ©. Hope I don’t loose guys here with the wave code – its quite simple really. The hard part is believing it.

We don’t go measuring anywhere: the spot-on accurate use for fibbs I found to be Elliot Wave Analysis. The other is its kin, Gartleys/bats/butterfly patterns analysis? The above tale(s) is an ideal, and as such should not be taken as a guarantee for performance with the fibbs, neither do I suggest that to be my actual performance in the markets. Remove them to avoid clutter on the charts, atleast the insignificant levels, and set visualization according to necessary timeframes. Forgive my typing manners – they are not the shortest. Another (off-chart?) tool with even more potent magic is Fibonacci time, which basically is the number of bars on chart rhyming with actual fibb-sequence numbers and their multiples as a cycle of same-degree waves progresses, again like clockwork. I have to remove my shoes to tread there – I’ll keep them on for now? Would someone with a better mastery of it please show us?

[forex_wales]

Thanks for the help - I to will prob use as TP levels
but to be honnest won’t use it that much
or my screen will be full

thanks for taking the time - I’m looking for
a 1 to 1 if anybody is intersted to check my
progress for a month or so before I go love

forex Wales

[forex_wales]

The fibs are a discovery/creation of Leornardo Fibonnacci who, like many other brilliant mathematicians, played with so many numbers 247365/6 till he stumbled upon one of the scientific relationships in nature. He was lucky, his discovery was The Golden Mean.

The 6.18 r/ship and its derivatives appear like clockwork allover the wave patterns – the Elliot Wave patterns. Adjacent waves display a percentage r/ship with each other, like 61.8%? Fibbs on charts are thus visual representation of the same. There are three ways that I’m atleast aware fibs should be applied; the most common Fibonacci retracement, Fibbonacci expansion and, Fibonacci extension.

Allow me to do a little back-testing, if only to demonstrate the fibbs in action; consider the G$ d1-timeframe from Aug’09. According to my current wave count for the pair, that would have been a correction of the bearish from all-time high to 1.3500, coming to an end at 50% retracement. An astute chartist with the method would have tried to discern the actionary 12345 from the corrective abc pattern. In Nov’09, the bearish trend resumes, and the chartist is once again convinced of the return of an actionary impulse wave bullish any degree, and he wants to set targets for the trade(s) he is in.

1). On mt4, go to the normal fibb tool and set its parameters for 0.236, 0.382, 0.5, 0.618, and 0.786; that is our retracement tool. From 16th Nov to Dec’09 is marked minor 1 (getting to that label is beyond the scope of this post), drag the tool to span the wave so as to prospect the depth of correction for upcoming minor 2 – turns out 61.8%. Is it just a coincidence that it had to be smack on one of our levels, the most significant? See chart 1.

Now that minor 1 and 2 are done, Chartist-Astute would know to look for minor 3 short, right after 2 ends as confirmed, with somewhere to hide the StopLoss.

2). Go to insert>fibo>expansion and place it on chart, set 6.18, 0.618, 1.0, 1.618, 2.0, 2.618, 3.0, 3.618, 4.618…; that’s our ruler for wave expansion. Place it to span our minor 1 with long arm & minor 2 short arm, this time to prospect for the next wave-target bearish. Watching for price action at our levels, it shouldn’t surprise us to be at 1.618.

3). Go to the fibb and set 1.0, 1.272, 1.618, 2.0, 2.618, 3.0, 3.618, 4.618…; that is our extension ruler. Assuming we used it at the scenario above, span minor 1 range, watch for fib levels; a less significant 2 times extension though, for wave 3 end.

The fibbs should sort of give us panic areas to watch for, to avoid messing up the trades with too much discretion in no-panic price range? A secondary aspect of the tools to employ is explained in the EW/Gartleys thread in this forum – that of fibbs’ convergence. For instance, see convergences for extension and expansion for same minor 1. There are other Elliot Wave Analysis guidelines to assist the decision, beyond this scope.

After minor 3 bearish, we know there’s a minor 4 bullish coming up, but what form and length we wouldn’t know. So we prospect for its retracement of previous 3. 38.2% retracement of minor 3 span reflects the up-trend, turns out it was wave [a] of 4 bullish ended, the swing-low level at 3 end reflects it again, end of wave [b]. Here, we are faced with a wave [c] minute bullish, how well such a trade turns out is subject to many things. A failed retest of 1.5530 on 26Apr’10 should cue in a short for the next wave(s) bearish, turns out to be minor 5. To prospect for its target is again possible: make the expansion tool to span minor 1 to 3 long arm and minor 4 short arm as shown in fifth chart. For the expansion tool, make it span wave1, then move it as it is to start of 5. Turns out 5 ended at 61.8 expansion of minor 3, 127.2% extension projecting minor 1. We might as well note that subsequent minor A retraces 38.2% of whole bearish int(1), with its sub [c] being 2 times extension projecting sub [a]. After int(A) is int (B) coming up next. Watch for (B) equity with (A), i.e. retest of 1.43, then bullish impulse int ©. Hope I don’t loose guys here with the wave code – its quite simple really. The hard part is believing it.

We don’t go measuring anywhere: the spot-on accurate use for fibbs I found to be Elliot Wave Analysis. The other is its kin, Gartleys/bats/butterfly patterns analysis? The above tale(s) is an ideal, and as such should not be taken as a guarantee for performance with the fibbs, neither do I suggest that to be my actual performance in the markets. Remove them to avoid clutter on the charts, atleast the insignificant levels, and set visualization according to necessary timeframes. Forgive my typing manners – they are not the shortest. Another (off-chart?) tool with even more potent magic is Fibonacci time, which basically is the number of bars on chart rhyming with actual fibb-sequence numbers and their multiples as a cycle of same-degree waves progresses, again like clockwork. I have to remove my shoes to tread there – I’ll keep them on for now? Would someone with a better mastery of it please show us?

awesome response with thanks - forex wales

[sophieolivia]

The fibs are a discovery/creation of Leornardo Fibonnacci who, like many other brilliant mathematicians, played with so many numbers 247365/6 till he stumbled upon one of the scientific relationships in nature. He was lucky, his discovery was The Golden Mean.

The 6.18 r/ship and its derivatives appear like clockwork allover the wave patterns – the Elliot Wave patterns. Adjacent waves display a percentage r/ship with each other, like 61.8%? Fibbs on charts are thus visual representation of the same. There are three ways that I’m atleast aware fibs should be applied; the most common Fibonacci retracement, Fibbonacci expansion and, Fibonacci extension.

Allow me to do a little back-testing, if only to demonstrate the fibbs in action; consider the G$ d1-timeframe from Aug’09. According to my current wave count for the pair, that would have been a correction of the bearish from all-time high to 1.3500, coming to an end at 50% retracement. An astute chartist with the method would have tried to discern the actionary 12345 from the corrective abc pattern. In Nov’09, the bearish trend resumes, and the chartist is once again convinced of the return of an actionary impulse wave bullish any degree, and he wants to set targets for the trade(s) he is in.

1). On mt4, go to the normal fibb tool and set its parameters for 0.236, 0.382, 0.5, 0.618, and 0.786; that is our retracement tool. From 16th Nov to Dec’09 is marked minor 1 (getting to that label is beyond the scope of this post), drag the tool to span the wave so as to prospect the depth of correction for upcoming minor 2 – turns out 61.8%. Is it just a coincidence that it had to be smack on one of our levels, the most significant? See chart 1.

Now that minor 1 and 2 are done, Chartist-Astute would know to look for minor 3 short, right after 2 ends as confirmed, with somewhere to hide the StopLoss.

2). Go to insert>fibo>expansion and place it on chart, set 6.18, 0.618, 1.0, 1.618, 2.0, 2.618, 3.0, 3.618, 4.618…; that’s our ruler for wave expansion. Place it to span our minor 1 with long arm & minor 2 short arm, this time to prospect for the next wave-target bearish. Watching for price action at our levels, it shouldn’t surprise us to be at 1.618.

3). Go to the fibb and set 1.0, 1.272, 1.618, 2.0, 2.618, 3.0, 3.618, 4.618…; that is our extension ruler. Assuming we used it at the scenario above, span minor 1 range, watch for fib levels; a less significant 2 times extension though, for wave 3 end.

The fibbs should sort of give us panic areas to watch for, to avoid messing up the trades with too much discretion in no-panic price range? A secondary aspect of the tools to employ is explained in the EW/Gartleys thread in this forum – that of fibbs’ convergence. For instance, see convergences for extension and expansion for same minor 1. There are other Elliot Wave Analysis guidelines to assist the decision, beyond this scope.

After minor 3 bearish, we know there’s a minor 4 bullish coming up, but what form and length we wouldn’t know. So we prospect for its retracement of previous 3. 38.2% retracement of minor 3 span reflects the up-trend, turns out it was wave [a] of 4 bullish ended, the swing-low level at 3 end reflects it again, end of wave [b]. Here, we are faced with a wave [c] minute bullish, how well such a trade turns out is subject to many things. A failed retest of 1.5530 on 26Apr’10 should cue in a short for the next wave(s) bearish, turns out to be minor 5. To prospect for its target is again possible: make the expansion tool to span minor 1 to 3 long arm and minor 4 short arm as shown in fifth chart. For the expansion tool, make it span wave1, then move it as it is to start of 5. Turns out 5 ended at 61.8 expansion of minor 3, 127.2% extension projecting minor 1. We might as well note that subsequent minor A retraces 38.2% of whole bearish int(1), with its sub [c] being 2 times extension projecting sub [a]. After int(A) is int (B) coming up next. Watch for (B) equity with (A), i.e. retest of 1.43, then bullish impulse int ©. Hope I don’t loose guys here with the wave code – its quite simple really. The hard part is believing it.

We don’t go measuring anywhere: the spot-on accurate use for fibbs I found to be Elliot Wave Analysis. The other is its kin, Gartleys/bats/butterfly patterns analysis? The above tale(s) is an ideal, and as such should not be taken as a guarantee for performance with the fibbs, neither do I suggest that to be my actual performance in the markets. Remove them to avoid clutter on the charts, atleast the insignificant levels, and set visualization according to necessary timeframes. Forgive my typing manners – they are not the shortest. Another (off-chart?) tool with even more potent magic is Fibonacci time, which basically is the number of bars on chart rhyming with actual fibb-sequence numbers and their multiples as a cycle of same-degree waves progresses, again like clockwork. I have to remove my shoes to tread there – I’ll keep them on for now? Would someone with a better mastery of it please show us?

Thank you for really detailed illustration here… benefit a lot from it.

Great post.

[chizzenpips]

Yáll welcome. You realize it is incomplete in that fibo timing and arch & fan are missing, youll have to ‘leverage with google’ for the rest - there,s a good short pdf at AF somewhere, will attatch the link when I get home. Happy trading today.