NOOB question


I have a question about fibonacci. Let’s say that there is an uptrend. I use the fibonacci rule. I select the low swing and the high swing. How am I suppose to interpret this graph? How is it that you make predictions whether the trend continues up or goes down? Can someone explain the significance of the percentage levels? I understand that they can be used as potential support and/or resistance levels but based off of that how do we predict the market movement?
If the market were to hit the support but never surpass it- will this be a good indicator that the market may rise?
If the market has three peaks where it never passes the resistance- will that be a good indicator that the market will drop?


Ok we just had this conversation. I am going to throw a concept out that I am sure to get slammed for. If were in an up trend and price is correcting. You draw the fib from the low to the high of the swing (ok great). The fib levels are retracment levels. So price most likely react to these fib levels. Do not assume they act as S/R levels. Instead look for S/R levels on the chart and see what S/R levels line up with fib levels. These are going to be the most valid levels to look for the trend to continue at these levels. Also Consider the higher the retracement level the higher the probability (not really but kind of).

Yeah we kind of just had a thread like this.

My reply is below

Its almost like any other method. They don’t work by themselves you need to use them with other methods as well.

Such as

Support and resistance
price action

Just a thing: Fibonacci Retracement | Fibonacci | Learn Forex Trading
Have fun :wink: