Why Successful Traders Use Fibonacci Retracements

[dasziel 10]

hahahah,

the most crazy apliccation for fibs are fibonacci grids....

 

Do you know them?

[SunTrader 10]

You will get out of something (fibs, trendlines, whatever) as much as you put in - time, effort, brain cells used.

[tradingwizzard 10]

I use Fibonacci retracement and expansion tools on a daily basis on my analysis.......I am mainly using Elliott Waves Theory and Fibonacci retracement and expansion levels are mandatory for counting waves (for example if you are looking for a flat, then the b wave should retrace more than 61.8% out of the previous a wave, or if you're looking for an impulsive move, then at least one wave should be extended more than 161.8% out of the next longest waves within the waves in the direction of the potential impulse)...........so yes, I use them all the time and yes, I find them extremely usefull.......for those that don't think that, just ask questions and I will gladly ask here using examples with Fibo on charts as explained above

[SunTrader 10]

XAUUSD

 

38.2% retracement last major swing down

 

161.8% external retracement of wave b

 

38.2% expansion of wave a

 

100% projection of wave a from wave b bottom

(in other words wave c equals wave a)

 

And for extra measure a lin reg channel.

 

Tight fib zone has kept a lid on price moving higher - so far. It might very well break through it and if it does that will be a signal of strength and probably much more significant room to the upside to come.

 

Or - as I expect the fib zone holds, price resumes downtrend which signals the 6/28/13 $1180.75 bottom will be taken out.

[MightyMouse 12]

True but that is like saying Barry Bonds was on steroids when he sets home run records.

 

He still would have been damn close without the "juice" though.

 

Break a rule or a law and there are consequences of course.

 

But SAC is an enormous trading firm that didn't get that way purely from insider info.

 

We can't say what Bonds would have done without the juice since we only know what he did with the juice. He apparently was not confident enough to play without steroids, so my guess is that he too felt that he wouldn't have done as well.

 

Same goes with SAC. If Steve Cohen could have done well without insider trading and breaking the law, then why bother? Again, he did it because he knew that he could not charge the fees he charged and remain as esteemed as he was without insider trading. As it turns out, Cohen is just another comedy act.

 

Oh, and there are more acts to follow. Citadel is next in line.

[SunTrader 10]

We can't say what Bonds would have done without the juice .........

.

It works both ways for Bonds or Cohen. We don't how good or poorly SAC would have done without insider info.

 

Meantime since he is escaping jail time and even with a hefty fine and lifetime industry ban he will walk away with more money than either of us have. I'd take that comedy act any day of the week.

[MightyMouse 12]

It works both ways for Bonds or Cohen. We don't how good or poorly SAC would have done without insider info.

 

Meantime since he is escaping jail time and even with a hefty fine and lifetime industry ban he will walk away with more money than either of us have. I'd take that comedy act any day of the week.

 

If money was everything I would agree. But, to me it isn't so I can't agree. I would rather be me than him any day.

[Ammeo 10]

Trading with Fibonacci ratios is often incorporated into the trading plans of many commodity traders to some degree. Carolyn Boroden, who is dubbed the “Fibonacci Queen”, trades almost exclusively with the use of Fibonacci numbers, ratios and time series....

[zupcon 10]

Trading with Fibonacci ratios is often incorporated into the trading plans of many commodity traders to some degree. Carolyn Boroden, who is dubbed the “Fibonacci Queen”, trades almost exclusively with the use of Fibonacci numbers, ratios and time series....

 

 

Does Carolyn Boroden even trade these days ?

[Richie Forex 10]

As a matter of fact Carolyn Boroden does trade these days. Her work in fibonacci has been highly influential in how I trade. In my experience, melding fibonacci and other break through levels seemed too choatic for me to consistently profit so I'm not doing it anymore.

[vladtitov151 10]

who says that? If you base you analysis only on Fib Retracements, you will surely get broke and bankrupt. Successful traders look at charts, indicators and follow market news.