Fibonacci Retracement

Rambo35

Active member
227 6
Fibonacci retracement levels may be one of the most popular indicators of support and resistance and they have been around for quite some time. Plenty of traders like to use those levels which explain their popularity, but what about their accuracy?

Do you think they are valid levels to indicate support and resistance because they simply work from a mathematical standpoint or are they accurate because the vast amount of traders who use them in order to determine support and resistance and base their trades as well as analysis on them?
 
C

cablemonster

0 0
Fibonacci retracement levels may be one of the most popular indicators of support and resistance and they have been around for quite some time. Plenty of traders like to use those levels which explain their popularity, but what about their accuracy?

Do you think they are valid levels to indicate support and resistance because they simply work from a mathematical standpoint or are they accurate because the vast amount of traders who use them in order to determine support and resistance and base their trades as well as analysis on them?
what we can say for sure is there tends to be increased liquidity around major fib levels. we can use this knowledge to our advantage.
 

NVP

Legendary member
36,774 1,880
Fibonacci retracement levels may be one of the most popular indicators of support and resistance and they have been around for quite some time. Plenty of traders like to use those levels which explain their popularity, but what about their accuracy?

Do you think they are valid levels to indicate support and resistance because they simply work from a mathematical standpoint or are they accurate because the vast amount of traders who use them in order to determine support and resistance and base their trades as well as analysis on them?
Rambo

all these new threads ...are you running for president ? :cool:

N
 

Rambo35

Active member
227 6
what we can say for sure is there tends to be increased liquidity around major fib levels. we can use this knowledge to our advantage.
Yes, I agree with you on that. I assume the increase in liquidity is due to plenty of traders using them to enter/exit positions.
 

Rambo35

Active member
227 6
Rambo

all these new threads ...are you running for president ? :cool:

N
Hey, I start two or three per week. I did not think that was a bad thing to do, starting a discussion in a public forum. I can scale down my activity here if what I do is considered bad by this community.
 

Mrs M

Junior member
26 1
I'm sorry, but I just can't hold with the "mysticism" side of Fibonacci. For a long time I completely ignored these levels because I thought it was a load of mumbo-jumbo. However, I've had to accept that if lots of other traders are using them, then I'm an idiot to ignore them. It's a bit like saying that there's nothing inherently special about round numbers, so I won't expect any support/resistance at those levels.
 

nunrgguy

Established member
656 118
I'm sorry, but I just can't hold with the "mysticism" side of Fibonacci. For a long time I completely ignored these levels because I thought it was a load of mumbo-jumbo. However, I've had to accept that if lots of other traders are using them, then I'm an idiot to ignore them. It's a bit like saying that there's nothing inherently special about round numbers, so I won't expect any support/resistance at those levels.
Yeah. All you need to do now is manage to draw them in the same place as every other nutjob :devilish:
 
M

member275544

0 0
I'm sorry, but I just can't hold with the "mysticism" side of Fibonacci. For a long time I completely ignored these levels because I thought it was a load of mumbo-jumbo. However, I've had to accept that if lots of other traders are using them, then I'm an idiot to ignore them. It's a bit like saying that there's nothing inherently special about round numbers, so I won't expect any support/resistance at those levels.
how do you know they are all using these levels in the same way? Some use them for support, but likewise someone is taking the opposite side..and using the exact same level as resistance.
all bollox to me..id go with your initial assumption
 

Rambo35

Active member
227 6
how do you know they are all using these levels in the same way? Some use them for support, but likewise someone is taking the opposite side..and using the exact same level as resistance.
It is true that while one trader may look at them as support, another one will determine them as resistance. I think that adds to an increase in trading volume around those levels, at least temporarily.
 

DuCaan

Active member
164 9

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