How to apply Fibonacci retracements?

[asimpleplan]

Hi, can anyone explain the logic of where to apply Fibonacci retracements?

On the ff chart I can see the Fibonacci retracement levels have been applied. In this case the bottom line is the low on the chart with the subsequent levels above.

What is the logic in applying the retracements from this low when if you scroll further back there'll be a lower low?

Is that how Fibonacci retracements work? They can be applied from any time period henceforth? Obviously on too small a timeframe they'll cease to be effective?

 

[asimpleplan]

I couldn't post the chart in spite of trying 2 different image hosting sites where I successfully uploaded the image, copied the link to paste into the 'insert image' option on this site, but 'trade2win' can't deal with the process. I've used many forums across the web and many suffer similar issues but many are very easy to use where quite often I can just drag and drop an image on to a post and the site's software sorts out the rest. 2017 and still having this problem!

 

[Convergence]

Fibonacci doesn't work studies prove it but the market does retrace usually with the random distribution around 60-80% you can get the free study here:

https://waverlyadvisors.com/research/

 

[DonHicks]

1. Step 1 – Identify the direction of the market: uptrend.
2. Step 2 – Attach the Fibonacci retracement tool on the bottom and drag it to the right, all the way to the top.
3. Step 3 – Monitor the three potential support levels: 0.236, 0.382 and 0.618.

 

[charles2]

Fibonacci doesn't work studies prove it but the market does retrace usually with the random distribution around 60-80% you can get the free study here:

https://waverl,find yadvisors.com/research/

Fibs works fine, find a strategy that suits your time frame, trade extension's or retraces, works like all strategies, when your stop gets hit, start again as long as your win lose ratio is in your favour ,no worries,