Fibonacci or Pivots???

kagein · Jan 1, 2008

Which retracement indicator is most widely used by professional currency traders, Fibonacci retracement lines or Pivots? Or is it a case of to each his own?

DaxDestroyer · Jan 1, 2008

I use both of them but these are both different and retracement indicator? This is a new word combination for me, which does not really express, what I use them for

DaxDestroyer · Jan 2, 2008

GammaJammer said:
Definitely fibo as far as the pros are concerned. I've never heard of anyone in the wholesale markets using pivot points, whereas fibos are widely used by banks, funds etc.

GJ

Are you sure?

I know a badge of S&P guys in the pit using it. And as well enough people who trade the Dax. Some even combine them, like myself :innocent:

FXSCALPER2 · Jan 2, 2008

GammaJammer said:
Definitely fibo as far as the pros are concerned. I've never heard of anyone in the wholesale markets using pivot points, whereas fibos are widely used by banks, funds etc.

GJ

Which banks have traders sitting there trading on fib levels? By traders I don't mean order fillers. I mean people taking directional trades using entries, stop losses and profit targets. I really would like to know. I find all this 'pro' business slightly annoying.

dbphoenix · Jan 2, 2008

GammaJammer said:
Technicals alone, imho, are simply not enough to move the odds far enough in your favour.

Fib levels are fundamental?

Bagehot · Jan 2, 2008

I guess by 'use' you just mean you're aware of where they are, rather than necessarily trading off them. It would just be one more thing to keep an eye on when you're lining up, rather than the trigger itself.

DC STOXX · Jan 2, 2008

Fibs for sure

I am always surprised how often the biggest traders use the most "almost" worrying methodology

dbphoenix · Jan 2, 2008

I doubt that it matters much, if at all. Some "pros" use Fib, some don't. Some use pivot points, some don't. Some use MACD, stochastics, MAs, trendlines, Level II, time&sales, blah, blah, blah. Some don't. Some don't even use charts.

But given the reported performance statistics of "professionals", what matters is not so much that you emulate them but that you have and follow a consistently profitable trading strategy. Whether or not that intersects with what a "professional" is doing is largely beside the point.

You can plot Fib, of course. And pivot points. But don't forget Bollinger Bands. And MAs. And trendlines. And the various channels and envelopes. Eventually you'll end up with something like this:

dbphoenix · Jan 2, 2008

GammaJammer said:
spoken like a true darksider. Amen brother......

Not intending to press the darksider case. If one can develop and implement a consistently profitable strategy based on MACD (or ADX, or DMI, or CCI, or or or), more power to 'im.

FXSCALPER2 · Jan 2, 2008

dbphoenix said:
I doubt that it matters much, if at all. Some "pros" use Fib, some don't. Some use pivot points, some don't. Some use MACD, stochastics, MAs, trendlines, Level II, time&sales, blah, blah, blah. Some don't. Some don't even use charts.

But given the reported performance statistics of "professionals", what matters is not so much that you emulate them but that you have and follow a consistently profitable trading strategy. Whether or not that intersects with what a "professional" is doing is largely beside the point.

You can plot Fib, of course. And pivot points. But don't forget Bollinger Bands. And MAs. And trendlines. And the various channels and envelopes. Eventually you'll end up with something like this:

Exactly!Boy, I hate that word 'pro' when applied to trading. When someone says the 'pros' use this and that, it makes me yawn.

DC STOXX · Jan 2, 2008

IMO anybody who can make a living from trading alone consistently is a professional

That could include a trader who nets £15k a year or £15000000000000000000000 a year

DaxDestroyer · Jan 2, 2008

GammaJammer said:
Why do you find it annoying? - they're just another segment of the market.

I obviously can't speak for the whole of the interbank FX market, but as a quick example, ALL of the traders on my desk use them. As do all of our current clients. At the last firm I worked (a tier 1 investment firm where I was a senior FX trader) they were also used by the trading desk. At the previous firm to that (where I was a market maker) they were used by both the market makers and the prop desk.

Most of the mates I talk to in the market also use them to a greater or lesser extent. The sheer number of people already looking at them means that whether or not you respect the methodology, you should be aware of at least where the bigger levels are imho. But, like everything else, thery're just one part of the bigger picture. Technicals alone, imho, are simply not enough to move the odds far enough in your favour.

As always, only my $0.02

GJ

I like to read your comments

apart from the part with the 2 cents

as you let it drop always as at least 2 Dollars

Don't take it personal, just a honest opinion from one professional to another one

kagein · Jan 3, 2008

Thanks your comments have been very helpful

Fibonacci or Pivots???

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