Fibonacci Retracement's

This is a discussion on Fibonacci Retracement's within the Technical Analysis forums, part of the Methods category; Any advice how to apply these to my chart ? I'm trying to develop a strat from scratch as opposed ...

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Old Mar 30, 2013, 5:35pm   #1
 
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Fibonacci Retracement's

Any advice how to apply these to my chart ?
I'm trying to develop a strat from scratch as opposed to using someone else's, It involves drawing two trend lines, two S/R lines and fibs.
Now, what's the norm for applying fibs ? Should these be drawn between supp and res ? (This in fact wont give any fib levels should the price breakout) Any recommendations ?
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Old Mar 30, 2013, 5:55pm   #2
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Re: Fibonacci Retracement's

The chart software I use automatically places them on highs and lows which seem less useful than opens and closes. So I coded my own indicator to do that. Others suggest using swing highs and lows. Seems open season on just about anything with regard to Fibs, so why not try applying the fib levels to your support and resistance levels and see if there’s a probabilistic edge? Can’t hurt to try.

One thing perhaps others can help me with – which daily data do you use to calculate your daily fib levels? I’ve ended up using the 17:00 EST as the EOD marker, but is that as valid/worse/better than any other time of day in a 24 hour market? There doesn’t seem to be any official technical consensus so wonder what the majority use.
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Old Mar 30, 2013, 7:59pm   #3
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Re: Fibonacci Retracement's

Quote:
Originally Posted by mike. View Post
Any advice how to apply these to my chart ?
Hi mike.
There's a bunch of articles about Fibs in the Articles section of T2W - of which this is possibly the best: Fibonacci Retracements on the Mini Dow If you don't trade the YM - don't be put off by the title - it's worth a read for anyone interested in Fibs.

Do please maintain the thread with your experiments with fibs - be they good or bad - so other members may help you and learn from your experiences.
Tim.
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Old Mar 30, 2013, 8:47pm   #4
 
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Re: Fibonacci Retracement's

mike. started this thread Thanks for replying gents, That is a sound article nick has wrote there Tim, I haven't read it all yet but will analyse it later tonight.
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Old Mar 31, 2013, 10:47am   #5
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Re: Fibonacci Retracement's

Read andycans old posts made back in the day when people used to discuss trading here. He lets a few cats out of bags.
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Old Mar 31, 2013, 12:53pm   #6
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Re: Fibonacci Retracement's

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Originally Posted by the hare View Post
Read andycans old posts made back in the day when people used to discuss trading here. He lets a few cats out of bags.
Thanks for the heads up, the hare.

I found this thread and duly made it a [Best Thread] - are there any others that you had in mind when you wrote your post?
Tim.
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Old Mar 31, 2013, 3:14pm   #7
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Re: Fibonacci Retracement's

Quote:
Originally Posted by timsk View Post
Thanks for the heads up, the hare.

I found this thread and duly made it a [Best Thread] - are there any others that you had in mind when you wrote your post?
Tim.
I wasn't really thinking a particular thread, just the general banter from the sacred geometry crowd.

I did a lot of work on fibs at one time, but never quite cracked it, mainly cos I was focussing on the predictive aspects rather than more important stuff. I have some very interesting charts back it be UK based on Elliot waves and fibs that are spookily accurate, I might post them one day 4 d lulz.

The problem I have with this stuff is there are too many lines, square based geometry, circle based, triangle based, fib levels, inverse of these levels etc. then there's discretion in selecting swing points, then there's timeframes etc, way too many degrees of freedom, but occassionally I can't help having another look.

I hate reccommending predictive techniques, but if people really must, then you might as well point them at the most intelligent bits of the intelligent nonsense
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Old Mar 31, 2013, 3:28pm   #8
 
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Re: Fibonacci Retracement's

I always found Fib levels to be uncannily accurate..in hindsight
like the Hare says, i have some historically amazing charts that can be shown to be spot on a fib level, but I'll be damned if you can ever really recreate it.
There are better/more reliable techniques for forecasting imho
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