questions to fibonacci traders

[seesound]

I have read several books about fibonacci trading such as Dynamic trader, trading with dinapoli levels etc. But it seems they all have one issue unclear: HOW TO OBJECTIVELY DETERMINE THE BEGINNING AND ENDING OF THE SWING USED LATER TO CALCULATE THE RETRACEMENT LEVEL.

I say objectively....


Could you suggest some readings and books on this issue?

Thanks in advance.

 

[TheBramble]

A book?

Don't know of one, but while you're waiting for someone to recommend one you can sharpen your high/low recognition skills by doing the following.

Pull up a chart in your chosen timeframe.

Zoom out until you begin to notice there are a couple of places where the prices seems 'at the end of its leash'. One will be high, one will be low. You can use these. Purely subjective, but it will give you something to do while you're waiting for that book.

Seriously seesound, there are 'objective' ways to assess a swing high/low and these you would need for systemisation purposes, but for testing Fib hypotheses, and even for trading purposes, an eyeball will do more than well enough.

hth

 

[Trader333]

This depends on whether you wish to day-trade or otherwise and which instrument you want to trade. If it is US stocks then Naz has done a lot of work in this area including multiple timeframe Fib retracements.


Paul