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Fibonacci Queen

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centaurer View Post
... I realized I had typed in the wrong ticker and so I basically figured out levels for this stock using prices from a different stock.

I have done the same thing with a random number generator to pick out support and resistance/pivot lines as an exercise. Price bounces off those too just as nicely. Why? Because we haven't defined what "bounce" really means. You just ignore all the other levels and all the violations of your own level. I think it is a big part because of how good we are at visually matching something to a horizontal line.

IMO you can't draw a horizontal level that doesn't "work". No one ever defines what "bounce" or "work" means precisely enough to prove that the line doesn't "work".

Similar topic here:

This doesn't prove fibs, etc., don't work, but it sets a fairly high bar. Not everything is actually a random line, but random lines can look very good in hindsight. But only there.

Maybe someone has some actual trading experience (not hindsight analysis of a chart) that will add to this discussion?


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