Do fibs 'work' ?

SpreadDoctor

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I am sure this thread will arouse some strong opinions. See attached scalping chart of DAX last few hours marked up with fibs. ;)
 

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I am sure this thread will arouse some strong opinions. See attached scalping chart of DAX last few hours marked up with fibs. ;)

My opinion is: they don't, only in hindsight.
Sure chances are there will be a reaction, but which one, 23, 32, 50, 61?
You've got a one in 4 chance..25% chance of getting the right level. What kind of odds are those to trade off (n)
 
Never used.
Had pivots stuck on the charts for a couple of years, long gone now
To me they just block the view of the price.

If they help you make profits, then great.
Each to there own.
 
It's a wonderful thing. Fibs are absolutely the most easily back-testable thing in the universe. But nobody has. Or if they have, they thought better of publishing it.

If it worked better than 50/50 you'd expect to see a lot more hits. But it doesn't. Unfortunately.

Some will cherry pick the ones that do show a correspondence and omit the many more that don't. Ya need to be on ya guard at all times.
 
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fibs are certainly controversial and fit in the voodoo category. my own thoughts are that a significant number of traders use them as evidenced by the chart. this information can be used to your advantage. just the same as if you see a stand out support and resistance level on a higher level time frame chart. The vast majority of traders will be looking at it and will know about it. Some will exit an onside trade there, some will initiate a position there, this information can be used to your advantage. GLGT
 
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The less lines drawn on your chart the better IMO.
 
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If I was a LP or a MM with a big super computer - i would have it set up to "fry" bulls and bears at most Fib levels

As far as I am concerned all traditional TA - ie before say 2005 and super computers being used - is now no long as vaild as in the good old days

Why should it be - the name of the game is to have traders money? -

Why would anything work more then 50/50 over say 500 or 5000 trades

The trick is to have new edges - and that's not playing with trad Fib levels - or even these new ones of 200% -300% and 500% etc etc

Only my opinion ;-)

Regards


F
 
I never liked them. Moving averages proved to be more supportive or resistive to me than fibs. I'll look at volume to determine whether it's a reversal or pullback.
 
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