Article Why Successful Traders Use Fibonacci and the Golden Ratio

T2W Bot

Staff member
1,498 115
Support and resistance levels on bar charts are a major component in the study of technical analysis. Many traders, including myself, use support and resistance levels to identify entry and exit points when trading markets. When determining support and resistance levels on charts, one should not overlook the key Fibonacci percentage "retracement" levels. I will detail specific Fibonacci percentages in this feature, but first I think it’s important to examine how those numbers were derived, and by whom.
Leonardo Fibonacci da Pisa was a famous 13th century mathematician. He helped introduce European countries to the decimal system, including the positioning of zero as the first digit in the number scale. Fibonacci also discovered a number sequence called "the Fibonacci sequence." That sequence is as follows: 1,1,2,3,5,8,13,21,34 and so on to infinity. Adding the two previous numbers in the sequence comes up with the next number.
Importantly, after the first several numbers in the...

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G-Man

Active member
243 3
It seems the title of this article was 'Why Successful Traders Use Fibonacci and the Golden Ratio', and yet didn't provide any information as to why traders use these, just seeming to provide a brief introduction.

The whole fibonacci concept is so exceedingly complex when opened up, a single article would not be able to provide much useable information. If it was stated that successful traders use Fibonacci because other traders do, then it would have provided more information.

G-Man
 

jerrygrant

Newbie
3 0
How can the author do justice to a title like that in one page? Who restricted him to one page anyway? Was it the editor?
 

charliechan

Experienced member
1,008 119
jerrygrant said:
How can the author do justice to a title like that in one page? Who restricted him to one page anyway? Was it the editor?

lol - 1 page is far too much for this.

back of a stamp would be more appropriate.

fib/gann levels are good 4 1 thing only - fading cos all the suckers use em.
 

crabbydog

Junior member
35 1
This is a topic covered in many places and I woudl expect all traders to be aware of them. To make an article like this useful it should produce some specifcsthat can be shown to enhance a traders trading.
 

TWI

Senior member
2,536 254
I am sure a lot of unsuccessful traders use this method as well and if all you have read is that page I suggest you may fall into this category if you decide to start using it now.
In my experience only way to use it is for retracements when price is retreating from a well defined trend to provide additional levels of likely support/resistance.
 

fxmarkets

Established member
834 50
G-Man said:
It seems the title of this article was 'Why Successful Traders Use Fibonacci and the Golden Ratio', and yet didn't provide any information as to why traders use these.

G-Man
We have to assume that traders see or view images of lovely profits, using these ratio's. Does a fib set up please the eye?
 
 
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