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I hesitate to post the chart with the latest price action included because I think we are all getting fatigued with this here. I will post it for the record with no commentary.
It may be the last one. Just consider this food for thought...
I agree. The idea was to show them as useful for market structure, but they still need to be traded. How price reacts to these levels is still gonna be key, and in part, what you do is gonna be based on price action at these levels in your time-frame.
At any rate, the next time I post a fib chart...it will be accompanied by a trade...
Man made is not the same as made in nature - you are just trying to be a smart ass here because the question you just posed is very naive.
Man-made objects do not naturally produce Fibonacci numbers, case in point - which one is man made and which is made in nature?
One of them cannot possibly contain Fibonacci numbers without deliberation.
If you can't tell the difference between nature and man-made - you got issues.
The market is made up of millions of participants who has their own agenda and who's individual action today and in the past no matter how small influences where the market is today. For Fibonacci numbers to work, you would have to believe that some higher power is guiding all of these people to move in a particular pattern to produce specific numbers down to the last 2 decimal places - does this not sound absurd to you?
It is akin to saying all the sunflowers in the world grow in a specific way to produce a Fibonacci pattern that can be viewed as a whole.
The logical explanation for short term Fib numbers is that you are being fooled by random lines. Fib's is a great guideline for pullback %'s, but they aren't magic numbers if nobody else uses it. Fib's also happen to draw a crap load of lines hence if you use Fib lines as "areas", you pretty much cover 80% of the pullback area anyway and one of them will be "respected" at some point.
The secondary explanation, particularly for longer term Fib numbers is that there are enough people who use them that they become a self fulfilling prophecy. ALL lines on a chart, whether they are simply straight lines or Fib charts have to by definition be self fulfilling prophecies - because if nobody fulfills it, the market will just ignore it.
Hence the argument that fibs do and don't work is pointless - they do work, to an extent that a large enough sample of others look at the same line you are too. The trick is finding the obvious ones where everyone else participates to increase the percentage chance it will work.
The answer here is simple, there is no natural cause of Fib numbers in the markets. They are caused in the exact same way as any other line - enough participants, though Fibs are much more open to interpretation as there are larger degrees of freedom versus some who just joins two very obvious highs or bottoms to produce a range.
Feel free to think there is a higher power forcing fib numbers to be respected due to "natural" causes but I prefer facts.