Fibs ??

Below is a current near-term 1hr screenshot of the gbpusd cash....plotted are fibs from swing lo's -points a and f to g. Arguably fibs could also have been plotted from swing lo's @ points b,c,d, and e - to point g as they are also fractal swing lo's ...The reason I have limited the fibs plotted to those from points a and f are;

i. Those swing lo's on this 1hr are co-existant with swing lo's on 4hr
ii. The swing lo's at points b,c,d, and e were not always preceeded by a HH in the uptrend on this the same t/f.

I am interested in hearing where others may have fibs drawn from to point g and why?

Thanks,
BBmac.

In your example I prefer a to g. If you look at it on a H4 char then you see we have 3 days of ranging then point a becomes a clear low, followed by a pin bar at the high.

Interesting fib on a daily chart below from 8/19 to 9/22. We have a nice pin bar right at the low on 10/6, followed by a breach of the 1st fib level for the 2nd time.

Peter

I'm sorry for being so thick. I can't see any advantage to be gained from using them, at all.

Splitlink said:

I'm sorry for being so thick. I can't see any advantage to be gained from using them, at all.

Click to expand...

You can use them similar to how traders use pivot points. Of course some traders don't use either. I use them as reference points and although I rarely will take an entry based solely on a fib level I will exit at a fib level as I would at a pivot point.

Peter

I use the breach of the 61.8% retracement as a 'get ready' to fade the failing move, the fade being pro-trend. Outside of this I don't use them but am concious of them and the fact that others trade around them.

I have nothing against the use of them because my opinion is that it is all a matter of selecting a trading point, be it one of them, a head or tail, an average, round figure---anything that makes sense to the trader, in fact, and that is his reason for opening and closing a trade.

What I see, here, though, is a debate about where to put "a" and "g". That says it all, to me. The damned things are discretionary. You put them where you think it makes sense.

Splitlink said:

I have nothing against the use of them because my opinion is that it is all a matter of selecting a trading point, be it one of them, a head or tail, an average, round figure---anything that makes sense to the trader, in fact, and that is his reason for opening and closing a trade.

What I see, here, though, is a debate about where to put "a" and "g". That says it all, to me. The damned things are discretionary. You put them where you think it makes sense.

Click to expand...

Argumentative today, aren't you?

If you were to put them when everyone else thinks it makes sense, then everyone is looking at the same thing. At the very least you will get some sort of tradeable action at or around those points.

Yes, there is some discretion. We all know trading isn't easy.

Peter

Splitlink said:

I'm sorry for being so thick. I can't see any advantage to be gained from using them, at all.

Click to expand...

One of the major problems of course is that if you put enough lines on a chart, one will get hit so I'm certainly no great fan.

I do however take notice in cases where you get a confluence or clusters of levels arising from multiple timeframes, particularly if an extension from a short term retrace coincides with a retracement level from the major trend timeframe.

Thanks for the replys,..I'll stick with the way I am doing it.

What is indisputable about fibs is that:

a. Yes, they can be somewhat discretiuonary re where you plot them from but the swings on the 1hr, + like TA in general on the higher t/f's versus the lower t/f's, seem to be where most participants plot them, and where they are potentially most significant.
b. Sufficient market participants plot fibs to make them worthy of using, and wether this makes them self fulfilling ? - to an undetermined extent it probably does - but then so much the better !
c. As The Hare says; clusters of fibs across different t/f's make for a potentially greater probability of a reaction at such a cluster (interesting re use of retracements and extensions across the t/f's - thx) and similarly the confluence with other potential sbr/rbs factors such as previous swing hi/lo's and trend lines again make for a potentially greater probability of a reaction at such confluence.

G/L