Why use fib levels (egyptian pyramids-bible codes)

Scotty2Cues

Established member
737 33
Newbie here,

Been learning about fib levels etc. I know how important they are in nature but why are they applied to the markets? Why does it work when it does or is it a fluke? I feel uneasy when learning about it.

I remember a tv program (approx 12 yrs ago) about a guy who claimed that the pyramid were much older than previously thought. He looked at astronomy records and found a time when the pyramids lined up with the constellations, looked very convincing. It turns out that if you take any city and look at certain landmarks, you can line them up with any constellation if you look long enough (its just a coincidence)

Another example is the bible codes. A mathematician thought he had found hidden messages in the bible (again looked very convincing) but a probability expert took the book Moby dick and show that there are hidden messages in that! again coincidence
 

dcraig1

Experienced member
1,604 243
http://www.lhup.edu/~dsimanek/pseudo/fibonacc.htm

Beware all magic numbers. Some traders may make money using fib retracements but that is because they are retracements not because they are magic. IMHO fibs are a load of old nonsense.

There is no doubt that in stock index futures traders do look at garden variety pivots and also at market profile levels (upper and lower value areas, point of control etc), together with S/R at previous high/lows. Start with these and give fibs a miss.

PS also look at VWAP
 
 
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