Do fibs 'work' ?

SpreadDoctor

Well-known member
318 59
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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member275544

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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)
 
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12WBT

0 0
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.
 

Pat Riley

Established member
794 178
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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SpreadDoctor

Well-known member
318 59
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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Forexmospherian

Legendary member
39,928 3,301
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


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drtro

Active member
216 21
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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