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Can You Help Me Understand Basic Fibonacci Terminology
There is no "properly use" in this business Nancy, watching what others do its the biggest mistake one can make if you ask me. Fibonacci and for that matter every other indicator have value only within a certain context and the context must be found by you and you alone, then you will figure it out how to use the tool in the proper way for you. I don't think there is an edge in Fibonacci numbers however I use it simple to measure the moves. There really are no magic numbers or levels, play with the tool long enough and you will find out if you like it or not, what to use and what not or even if you want to use it or not. If you do not trust your judgement you can`t win this game and that is why from the start you must do everything by yourself when it comes to the "proper use" of any information, tool, or whatever. Just my humble opinion.
Can you help answer these questions from other members on NexusFi?
That's the equivalent of saying there is no proper way to calculate a simple moving average, linear regression line, standard deviations, standard errors of the estimate, or more specifically, simple fibonacci retracement lines. If someone said that fibonacci retracements are measured from successive swing highs, rather than swing highs and swing lows, opinion would be nearly universal that this would not be "properly us[ing]" fibonacci retracements. There are best practices in every industry.
My question was simple enough but perhaps it can be simpler: how do traders use fibonacci percentages greater than 100% and from what points are they measured.
Parenthetically, of course it's not "magic" -- it's mathematics. Give me a little bit of credit.
I looked for it, but I couldn't find it. I may be wrong, but the link appeared to take me to videos only available to so-called "Elite Members." I'm new to the site as of yesterday, so I haven't looked into what it takes to become an Elite Member.
Am I wrong? I'd very much enjoy watching the webinar in either case.
Simply pay the *lifetime* fee to get access and become an Elite member, you won't regret it, truckloads of great information and other content available.
I think what Paul is trying to say is.... there is value in Fibs but they are not the holy grail of trading. Use them if they help you but remain flexible because they will not work 100% of the time.
here is an example of how I might use an extension.
Everybody is going to do it a different way depending on their risk and Target.
Good luck to you
If you always do what you have always done you will always get what you have always gotten.
Celebrate because you executed your edge. Not because you won.
It appears that the "extension" was calculated using the swing high of 102.2 and swing low of 101.4 (0.8) and adding 0.8 back to the 101.5 retracement, to get a potential 100% extension target of 102.3.
I would add that each class of instrument (e.g. Stocks v Futures, liquid v illiquid stocks) and instruments within a class (e.g. 6E v 6B) can exhibit different fib behaviour and that a smoother grade of sandpaper comes highly recommended too.
Another source of info can be found on YouTube. Of course one has to be careful of sources on the internet (cause if it is on the internet it has to be true, right? ). This linked video is by a well respected and knowledgeable person (Manesh Patel) and may shed some light on your query.