Day Trading & Forex Forum

barjon

Hi everyone,

As a new boy to T2W can I ask if anyone makes much use of Fibonacci retracement levels?

I have found that candlestick reversal indicators occuring at 50% retracement level are very reliable, about 65%, although not necessarily to the degree that gives a significantly profitable trade.

Sufficient though for me to double my normal trading size when a swing high (low) is associated with a candlestick reversal indicator at around the 50% retracement level.

I'm not sure why the 50% retracement works so well as resistance (support). Maybe it's something to do with supply and demand theory being the point at which the number of buyers and sellers should be equal. Any thoughts?

Jon

Trader333

Hi Barjon,

You will find that the T2W member known as "Naz" , (who is a professional trader of the Nasdaq stocks), is a big user of Fibonacci Retracement Levels. There was a thread where he gave examples of how he had used it but I cannot find it anymore. Does anyone know what happened to it ?


Paul

options

Nope, can't find that thread either.
Fibs do work resoundingly well for me though. Used with volume trends and your own sup and res and you can't go far wrong in my view.

Skimbleshanks

Ages ago I bought a book entitled 'The trading rule that can make you rich'. I bought it via the Internet so didn't have the pleasure of finding out what the 'rule' was before I bought it; had I known I would not have bought it obviously!

The rule was that markets often retrace 50% of a major move - all 67 pages were devoted to this. The book was aimed at commodities rather than stocks, and I must admit that although I rarely use fibonacci retracements anymore, the one I do slap on a chart for a laugh is the 50%, and it does indeed work surprisingly well.

I doubt that the Naz thread Trader333 and Options refer to has been pulled; it probably is there somewhere in the murky depths, perhaps disguised as the thread titles are often quite disparate from the main discussion contained within them.

riddle

I think I found the thread, called 'stop loss', from december 12. Worth a look.

http://www.trade2win.co.uk/boards/sh...ht=naz+and+fib

barjon

Thanks to everyone - particularly riddle for plumbing the depths.

Good hunting folks!!

Jon

Trader333

Hi All,

I have just found the thread and it is not the same as posted by riddle but is excellent and also very long.

Cheers


Paul


http://www.trade2win.co.uk/boards/sh...0&pagenumber=1

Maverick27

Hi,
I'm finding it extremely difficult in knowing which level will hold in Fib. Retracements !
I've seen on the charts that prices reverse midway between 50% & 61.8% sometimes.
Price can under shoot or over shoot a Fib. level. Can somebody pls. give me few tips/helpful advice on this subject matter ?!
Do we look for Trend Reversal patterns @ Fib. Levels or can we incorporate few simple indicators to help determine probable price turning points etc,etc..

I've read about Donchian Channels , pls. enlighten me !

Thanks, Mave