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Are Fibonacci retracements and projections useful?
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I would bet most people using Fib lines use their common sense. If you use Fib lines as a potential turning point IF and only IF price shows signs it wants to turn then what's the problem?
Add to that if the same trader also would look at turning points (Fib lines) on the Yen and Bonds how much power this guy would gain.
There was a good exit on Friday. Fibonacci confluence was at 2011.75 points, the low of the day was at 2011.50 points. The next exit level would be found at 1982.75 points. Fibonacci confluence is not just taking into account the last swing but includes all swings over the last years (for this chart I have used 2000 days).
However, in this case the exit levels are mostly based on prior swing highs and lows which are probably reinforced by other fib retracements or expansions. More conventional but certainly good exit points.
But of course those levels can only provide for support, if they are reached. However, in some cases they are also magnets. The magnetic property is linked to many traders staring at the same level. It should be pretty simple to find.
No worries, bro, i laughed, and I have used the tool pictured below as well and its very good That said, there are eight bullets visible, which is a fib number
Even just two simple fibs are better then one. Or one fib and one psychological level. Right now on the daily u can see price testing the convergence of the 38.2 percent retracement and the psychological 2000 level so there is decent support here. I look at more then this but this is a place to start.
Back to the more advanced look with the three big orange dots highlighting three key confluence areas:
my initial reaction in terms of going long for a good swing would be above the top confluence around 2038-2040 but AS WITH ANY SYSTEM, you need to see how price reacts at these levels. We can watch these same levels for the next few days or so and see if they work at all...
