Are Fibonacci retracements and projections useful?

November 3rd, 2015, 10:02 AM

Fibonacci alone can not make you a consistent profitable trader.

This is where I agree with Big Mike and others that Fibs are nonsense. But what I'm really saying is that Fibs in a stand alone context are nonsense.

My question to the Fib naysayers is what SINGLE technique or method will make you a consistent profitable trader?

November 3rd, 2015, 10:38 AM

Anyone went long at the 38.2%?

November 3rd, 2015, 10:56 AM

I wonder if anyone here has ever tried a TST Combine using a pure Fibonacci based trading method ?

That might make for an interesting trading journal if someone here were to take that on.

November 3rd, 2015, 11:03 AM

trendisyourfriend

Anyone went long at the 38.2%?

Well the question is did you take that long and if so did you stay in the trade during those 4 pt pullbacks around the open before it really moved higher?

November 3rd, 2015, 11:14 AM

I took an entry and exit based on fib at a shorter timeframe based on that 38.2% fib on the longer term timeframe.

November 3rd, 2015, 12:14 PM

trendwaves

At the end of the day does it really matter if you can scientifically prove the underlying cause of something being observed if it helps you produce consistent results in your trading ? Use what works for you, that's what I do.

Perhaps an even more elementary question one could ask (or answer) here is: Exactly how does Fibonacci help you maintain consistent profitability trading ? Rather than trying to prove or explain why it works in a theoretical sense, show how it works for you in a practical sense.

Yes, I think that's the conclusion we have all agreed on. It is just one of many ways to look at things, on its own I don't think it can help maintain consistency, that is strictly between the trader's ears. I wouldn't want to use them on their own, but that's true of anything else I know too.

It is certainly far too easy to get dragged into theoretical chit-chat and forget about what counts, is the job profitable or not? I have had periods of astonishing profitability but many long periods of losses, so all I can say is that I am no trader yet, I just keep learning, exploring and trying to fill in missing pieces of my own puzzle.

Cheers

November 5th, 2015, 01:25 AM

I've been thinking about this question (are fib useful) along with the question of whether any indicator "is useful".

I'm starting to be of the opinion that, the true underlying value of an indicator is really that it is emotionless. Meaning, they are just tools (all of them, fibs, averages, etc.) to help you take objective action according to your plan. Either the number is >, < or = to whatever indicator you are using.

Of course, there are varying ways these tools are applied, along with varying rates of success and probability. However, at the very basis/fundamental level, I think the only true value is it's ability to help people remain objectively consistent

November 5th, 2015, 07:47 PM

thetamax8

at the very basis/fundamental level, I think the only true value is it's ability to help people remain objectively consistent

Do you think indicators help people to do that more than prices do?

November 7th, 2015, 05:58 AM

Here is one retracement and one projection used together:

People talk about one line, but its not the individual lines that matter so much as the confluences...

By the way, these lines could have been set in place by October 1st.

November 7th, 2015, 11:27 AM

srgtroy

Here is one retracement and one projection used together:

People talk about one line, but its not the individual lines that matter so much as the confluences...

By the way, these lines could have been set in place by October 1st.

These kinds of pictures always make me smile, because they suggest that there is some kind of order in the world after all, which is an idea I like.

We have beaten this fib horse pretty well to death in this thread, so I am not offering any criticism or objection. But I do see all those lines, and many, many confluences too, and, while I do like how it worked out, I always wonder how I would really make use of them. Some of them have only a bar's height between them, or less, and look how many get touched. How to distinguish them, is my question.

This is just a comment, not an attempt to continue an argument. I think we got to an acceptable stopping point already, and I'm not fighting you. I do really like this kind of stuff.

My friend @ratfink sometimes calls it art, and I can appreciate that. Thanks for the chart, it is very cool.

Bob.

Are Fibonacci retracements and projections useful?

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Are Fibonacci retracements and projections useful?