(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 100,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors – all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you don’t need to worry about fake reviews.

We are fundamentally different than most other trading sites:

We are here to help. Just let us know what you need.

We work extremely hard to keep things positive in our community.

We do not tolerate rude behavior, trolling, or vendors advertising in posts.

We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.

We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community. It's free and simple.

yes, Mike is right. The 50% retracement level is not really a Fibonacci ratio, but it is used because of the overwhelming tendency for an asset to continue in a certain direction once it completes a 50% retracement.

I don't argue against 50% being useful. Just that it has absolutely zero to do with fibonacci.

Mike

Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.

Need help? 1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first. 2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses. 3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make. 4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance. 5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers. 6) Help using the forum? Watch this video to learn general tips on using the site.

If you want to support our community, become an Elite Member.

You get the various Fibonacci ratios by calculating ratios between various members of the sequence.

For example, if you divide each member of the sequence by the one just ahead of it, for example, 1/1, 1/2, 2/3, 3/5, 5/8, 8/13, 13/21, 21/34, etc., you get a set of ratios that converges to the famous .618:

It gets closer and closer to .618 as you do more divisions.

Note that .50 is one of the ratios in this series -- although it's basically an approximation of .618, which is what the series is tending toward. Relationships like this are how all the "Fib numbers" are derived.

(Dividing each member of the original sequence by the one two steps ahead -- such as 34 by 89 -- gives a series that converges to .382 after a few steps.)

So, it sort of is a "Fib number" and sort of isn't. But being in one of these series of ratios derived from the original sequence is the only reason anything is called a Fib ratio, or number.

Is this anything more than number games? Hard to say.

But that's sort of the general question about Fibonacci's, isn't it? Depends on how you look at it, I guess.

Bob.

The following 3 users say Thank You to bobwest for this post:

This ratio "converges" to 1.618 as the numbers get higher and the reverse ratio becomes 0.618 (1/1.618 = 0.618), thus the golden ratio (elementary). Any other number out there like:

square root of 1.618 = 1.27
square root of 0.618 = 0.786
power 2 of 0.618 = 0.382
power 2 of 1.618 = 2.618, etc.

are a manipulation of the ratio. One can make any combination or a product number he wants using the golden ratio but it is not a Fib ratio.

That said, people tend to forget that the series starts with a 0 and an extra 1. Thus, the reason that the numbers Infinity, 1, and 2 (A/B) or their inverse 0, 1, and 0.5 (B/A) (thus 50%) can be considered Fib ratios at the low end of the series.

Regardless, the golden ratio is a "convergence" number and not an absolute number. It will have different values for different numbers inside the series depending on the numbers of decimals considered. Therefore, any ratio or (inverse ratio) from any two consecutive numbers including 0.5 or 50% can be considered a Fib ratio knowing that it will converge to or 0.618......... at high series numbers.

As far as the validity of the Fib levels and any other levels or patterns like trend lines, ice lines, creek lines, SOT, or break out of channels, patterns etc. applied in trading, are simply areas where traders have traditionally accepted as price levels where there will be a crowd psychological reaction for managing an existing trade, not necessarily entering a new trade.

So, we can sarcastically bash one vs the others as much as we want, But the fact is that some traders knowingly use these levels very successfully. The point here is that one needs to learn how to use certain tools and if they work, keep using them until they don't work or a better tool is discovered.

Cheers!

Edit: 11:46

@bobwest, I posted this a few minutes before I saw you post. Obviously, we share some views on this subject.

The following 3 users say Thank You to aligator for this post:

Because if you actually, honestly, really look at every single one of those lines you will see that sometimes prices crosses it upwards, sometimes downwards, sometimes it reverses and sometimes it pokes and reverses. Just like every other line/band/area/region/indy/divergence/plod/phod/or/wor/fib/etc/etc/etc that we use. I've yet to see any chart of anything posted where this isn't true, I mean Crumbs, it's even true of vwap and it's merry bands. Holy mackerel batman.

One man's discretion is another man's science, art or skill.

Travel Well

The following 5 users say Thank You to ratfink for this post: