# How long are Fibs valid?

Good morning,

Fibs (Fibonacci lines) are nice, but how long are they valid?
I mean, if i draw the lines from a recent SHSL i guess that after some time i have to draw new Fibs because the old ones are no more valid.

How long do i have to wait untill i draw new lines? Immediatly when there comes after some time a new SHSL drawing-possibility?

1 Like

Until they are PROVEN invalid through testing.
itâ€™s not based on time, itâ€™s based on fact

Thanks,so if price moves between the different fib lines up and down, one time crossing,than crossing back and so on i have to wait so long untill all fibs are broken in the main direction to draw new fibs?

Noâ€¦ Not at all

When i said, Until they are disproven, or Proven Invalid (Either way)
it means that when price is moving up and down and IS NOT RESPECTING THE LEVELS (at least the main ones), it is then obvious that the chart is irrelevant and not of any consequence to any trading decision

however if the chart SEEMS TO HAVE Most levels respected, then keep it there. if it goes up from the 0% and respects all the levels all the way up and then gets to 100% and respects all the levels all the way down
then up again and down again and it does that for 2 years all while respecting the levels. KEEP THE CHART ON

if itsâ€™ respecting the levels then all of a sudden none of little of the levels are being respected, take it down.

same with any indicator
if you are relying on MAâ€™s for example to cross over and thus indicate a reversal, and THEY CROSS OVER but price does not reverse, the indicator is proven invalid

many people TRUST INDICATORS. i donâ€™t
i consider them disposable at the drop of a hat

if they prove their worth to me, i keep them
if they all of a sudden prove to not work, i bin them and get a new one, because keeping them will cost you money (Loss)

thatsâ€™ what i mean

Now its clear,I understand, thanks-the reason for my interest in the fib lines (or other support or resistance lines) is exactly what you mentioned just now-the reliability of the indicators.
During my trading activities since my first questions in this forum i found out, that especially my indicators i was looking at (Stoch, RSI) are very often heavy overbought (Stoch and RSI both in the 80-90 zone moving in that area horizontal) and the price keeps still on rising in a very constant manner.
So according to the rules nobody would give the advice to go long in such an overbought situation-but it would be often the right decission and some 10-20 pips are still to catch in the further up move the next 10-20 minutes.
So my intention is to look at a broken resitance or fib line in the up move giving a â€śbuyâ€ť signal,which (so to say) â€śoverrulesâ€ť the negativ signal of the Stoch and RSI. Or can you give me a better advice how to act in such a situation?

how about looking at like thisâ€¦

BROKEN RESISTANCE, thus confirming to yourself that someone broke and thus became weaker, as in â€¦ if price is going up then the bulls are winning and the bears are losing

how about considering that both the bulls and bears are playing you for a fool , did that ever occur to you ?
that When Resistance breaks , itâ€™s not a real break, itâ€™s just a fake break.

also if you like fib levels
try PIVOT POINTS, i think you might like them , Pivot points are relatively reliable on higher time frames, lower time framesâ€¦ no so much

But whats your opinion to those special situations, when price is rising inspite RSI and Stoch are heayy overbought-its realy interesting to observe-price goes constantly still up, RSI and Stoch moves horizontal in the overbought zoneâ€¦

well. the first question i would ask is
Why do you believe that the RSI is a valid indicator
also
Why do you believe that the Stoch is a valid indicator

you see HERE IS MY OPINION
if i believed that RSI and STOCH were very strong indicators and then you said,
Price is rising despite of the RSI and STOCH, â€¦ i would have no answer

however, since i have used the RSI and proven it as faulty TO ME AND MY STYLE OF TRADING, and therefore i no longer use it. and i consider STOCH unnecessary but not totally useless

i can then say that the indicators that you are using are not doing you any favours and thatâ€™s why price is rising

the bottom line is â€¦ test an indicator if it works it works if it doesnâ€™t it doesnâ€™t
sounds to me like you need to throw these away and test new indicators

also TEST ONLY 1 AT A TIME
and only combine them if you know that the other one works, that way when they donâ€™t correlate, youâ€™ll know itâ€™s the new one that is faulty

sounds to me like you need to throw these away and test new indicators

ha,ha,i think you hit the point with that statement-thats the reason why i am testing now around with other options-what worked some days is unfortunately no guarantee that it works in the long run

1 Like

Thatâ€™s correct

i do Use Fibs at times
i have found Heiken Ashi to be very reliable
I have found Pivot Points to be pretty reliable as well
i have found correlating pairs to be reliable (After testing for correct pairs)

i use other indies, but these are my main ones

Iâ€™m not sure pivot levels are of much practical use even on the higher time frames. Sure price will hit an S1, 2 or 3 and hesitate but is just as likely to break through as reverse. Then of course which type? Fib, fib retracement, carmilla, woodie, floor? The only practical use I have ever had for pivot levels was to remove the S and R values and just keep the pivot level itself, perhaps the daily, and 4h. That at least will show the direction on both time frames as a series of steps if set to historical. Kind of a Donchian channel without the high/low.

@Margincall
I understand mate
each to his own at the end of the day, you test things , you use what works for you.
Pivot points play a part in my trading and i have proven them to be relevant and real.

others may not agree, and thatâ€™s fine, because their trading does not affect mine.

Appreciate your feed back. Agreed in the early days, weeks, months and years we test indicators. Boy did I test them for around 2 years and combinations thereof. But in the end I realised they did not bring anything to my technical analysis that was not already there on the monthly, weekly, daily and 4h HLOC of a given candle. A case in point would be USD/CAD right now. Direction from 1.2760? My best guess will be short.