Does Fibonacci work with Forex? It seems to be somewhat usable just like using it in the stock market along with trend lines. Has anybody had any experience good or bad using it?
Some people swear by it and believe price always retraces to a certain Fib extension and all that, and I know many profitable traders who base their technical analysis around it.
I’ve never used it myself. I do use trend lines however, with a SMA/EMA and few other little things.
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Aside from SMA/EMA, what other indicators do you use?
Fibonacci is the Coke of indicators.
All have tried it. A massive number of people use it, and it serves its purpose well 
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Yes, it works! But you have to mark the up & down levels so smartly! Besides, default sittings are quite enough.
I use support and resistance lines/zones, and trends. I’m just starting to use Fib. I feel there is really something to it if you can pick the right place to start and stop.
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It works really, agree, but all about temporary session not for permanently.
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it does, but not all the time like with everything else. There are other PA factors to look at when using fibs also
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I use a few different setups depending on the daily chart, or the hourly chart for entries.
On this particular setup I’m using what you might call a trend line and a slow stochastic. I’m also using ichimoku cloud to get the overall market direction.
At the end of the day if you want to make serious cash, you can’t just draw fibs everywhere and expect price to go there.
You have to trade in the now, not in the future.
Even though its true, that we’re all trading based on the future, in terms of what we think will happen - setting a Fib and setting your take profit at an exact level is very silly.
I’ve seen traders set their take profit at certain Fib extension and it missed by a few pips and started to go the other way, you have to use the Fib as a rough target and bank cash when you can.
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Fib levels really don’t work, at least alone - and there is no evidence to suggest that they do. I guess all you have to do is look at what Fibs actually show? It’s a mathematical tool based on an equation. This equation has nothing to do with the chart which you are drawing fibs on. The only reason Fib levels may work is because they either co-inside with a level which is based off prior substantial PA or enough people in the market place (volume weighted) are actually following a Fib level that the market does indeed respect it.
But in short, and for sure, Fib levels have absolutely NOTHING to do the price charts
Agreed.
Ichimoku is what I want to learn how to use. Is the school lesson here on bp enough for that subject?
There are many resources, the best ones being on YouTube for practical examples.
A very short and sweet summary.
But I read up on the basics from this website, Ichimoku Kinko Hyo.
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Thank you so much for the links man. Really appreciate it!!! Will bookmark this post and read up over the weekend!
I got your point & that’s the true story! Market doesn’t depend on this kind of tool; it’s about supply & demand.
Hello smsgtdaves,
To answer your question, YES, the Fibonacci Retracement does work with Forex. It is one of the main tools that I use primarily in trading the Forex market. And for the past 10+ years or so, my experience using it has been good mostly, if not, majority of that time.
but you don’t base your entries and exits off of those fib levels, right?
Hey justshell,
Sorry for the late response but yes I do base my entries and exits off of the fib levels that I find in conjunction with some other rules being met that I have in place.
Yes fib levels work very well
I use them for TP and SL levels.
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