Active member
hi all

I know not everyone is a Fibonacci fan but I came across this example of a great Fib fit.
I was actually eyeballing through stocks looking for range trades when I found DGE, I think I must have put the Fib trendline on a while ago but now it has produced this lovely fit.

what i ahve found is that some stocks will produce fit's similar to this while some just will not behave.


BTW - I tried to post this morning but got frozen out of the T2W server database. Apologies if this appears twice!!


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Nice chart - 50% fibs are quite powerful, and they are, supposedly the one to use as stocks often retrace 50% of the prior big move, as you have illustrated on the Diageo chart.

I can also see a very clear head and shoulders pattern there too (well, clear to me anyway), so that does look a nice long term short all the way down to 570 again. Left shoulder is at mid March, head is April, and right shoulder is mid June.


Active member
LOL Skim

I've overlaid a Zig Zag line on the chart (3point reversal) to try to see the H&S. Not sure I do?

H&S in a downtrend is a continuation pattern? It certainly is more often continuation than reversal in a bull trend IHO

I actually thought that we would see a bounce from the 23.6% and a nice uptrend to 710 but I'll wait until I see the next bars. That's why I was looking for range traders.

However let's wait and see.


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The downtrend ends mid February; then there's an uptrend and the h&s is at the top of the uptrend. That's my reasoning, but as with everything two people will see completely different things and that is the beauty of trading.


Junior member
as Fibonacci is a naturally occuring ratio/sequence it would make sense that it should work better on more liquid, higher volume stocks/index, where herding, fear and greed would be more prominent.

Would be interested in other views.

FTSE Beater

Experienced member
Hi CGuesty

I have to agree with what you have said. If you take the 2 extremes - DGE worked well as Esiotrot has pointed out, yet some of the smaller companies just move from one place to another on very low volume - not stopping for anything.

Esiotrot - Lovely chart :)
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