Fibonacci Retracements, Extensions, Overlaps

[momothebored]

Hello!

(i) General question:
How do you tell which level is likely to be the one to hold (support retracements) or be reached (breakout targets)?

(ii) Fibo Retracements:
So on the way down, you're supposed to calculate supports by using the 0% level at the last top, and 100% at the base of the last move right?

(iii) Fibo overlaps:
How are these used effectively? How long are overlap levels supposed to last?
e.g. in the context of a daily chart, let's say 2 candles have levels that overlap. So... what then? Are they supposed to be stronger than a moving average?

tyvm

 

[malaguti]

red

(i) General question:
How do you tell which level is likely to be the one to hold (support retracements) or be reached (breakout targets)?
the one that worked in hindsight. Thats the marvellous thing about fibonacci. Ok there is a hint of scepticism, but you would have to go down to a shorter timeframe to get a clue for any divergence or CIT at that level

(ii) Fibo Retracements:
So on the way down, you're supposed to calculate supports by using the 0% level at the last top, and 100% at the base of the last move right?
Correct

(iii) Fibo overlaps:
How are these used effectively? How long are overlap levels supposed to last?
e.g. in the context of a daily chart, let's say 2 candles have levels that overlap. So... what then? Are they supposed to be stronger than a moving average?
You've definitely lost me now

 

[Purple Brain]

Hello!

(i) General question:
How do you tell which level is likely to be the one to hold (support retracements) or be reached (breakout targets)?

As far as I have been able to ascertain - you can't.

(ii) Fibo Retracements:
So on the way down, you're supposed to calculate supports by using the 0% level at the last top, and 100% at the base of the last move right?

If you're using the 100% at the base then your supports are already busted. You could use that to decide where the price might likely retrace to and find resistance, but your guess is as good as anyone else which of the many levels that might be - if any.

(iii) Fibo overlaps:
How are these used effectively? How long are overlap levels supposed to last?
e.g. in the context of a daily chart, let's say 2 candles have levels that overlap. So... what then? Are they supposed to be stronger than a moving average?

tyvm

I have no idea what any of this means.

 

[Liquid validity]

I don't know, I don't use or like fibs.

I'll explain, lots of people call them a self fulfilling prophecy.
That only applies if everyone uses them, they don't.

The only universal truth for everyone, that all can see,
are price levels - Support and resistance, big round numbers etc.
More importantly, how price reacts to those levels.

Everything else is a concoction of arbitrary maths (all indicators).

 

[neil]

I don't know, I don't use or like fibs.

I'll explain, lots of people call them a self fulfilling prophecy.
That only applies if everyone uses them, they don't.

The only universal truth for everyone, that all can see,
are price levels - Support and resistance, big round numbers etc.
More importantly, how price reacts to those levels.

Everything else is a concoction of arbitrary maths (all indicators).

An excellent post LV

 

[momothebored]

Tyvm!

 

[MajorMagnuM]

Hello!

(i) General question:
How do you tell which level is likely to be the one to hold (support retracements) or be reached (breakout targets)?

(ii) Fibo Retracements:
So on the way down, you're supposed to calculate supports by using the 0% level at the last top, and 100% at the base of the last move right?

(iii) Fibo overlaps:
How are these used effectively? How long are overlap levels supposed to last?
e.g. in the context of a daily chart, let's say 2 candles have levels that overlap. So... what then? Are they supposed to be stronger than a moving average?

tyvm

BY overlaps do u mean confluence areas. If so, i can recommend some reading materials. p.s i generally only use fibs on larger tf

 

[BataviaTrader]

Hello!

...

(ii) Fibo Retracements:
So on the way down, you're supposed to calculate supports by using the 0% level at the last top, and 100% at the base of the last move right?

....

tyvm

I think it's the other way around.

For what it's worth, see the picture on this page:
https://en.wikipedia.org/wiki/Fibonacci_retracement

 

[MLord]

If you still have any questions about Fibonacci retracements or extensions, feel free to check out our comprehensive Fibonacci trading techniques guide located here -- http://pennystocks.la/fibonacci-trading-techniques. Please let me know if you have any questions or concerns about the contents of the guide.

 

[DuCaan]

Here is a recent example of USDJPY with the FIbonacci ratios and pattern formation. As I guess, depending on the time frame one is using to trade. One could wait for some bar pattern signal when the price reaches to ratio level to enter or to exit the trade.

 

[DuCaan]

Another example here
http://marketchartpattern.com/forex/eurgbp-ready-move-higher-technical-analysis-10-march-2014/