Fibs don't work

Discussion in 'Technical Analysis' started by SunTrader, May 18, 2022.

  1. SunTrader


    .... except when they do (clearer chart image when you click it):-

    nooby_mcnoob, wastelands and comagnum like this.
  2. maxinger


    It only works on seashells and those things.
    emojitrading, Leob and rb7 like this.
  3. Nobert


    How can an external factor like a handwritten line on the chart, influence the fundamental basis beneath. It can't.
    Or at at least in a perfect world it - cannot.
    But this is not a perfect world. Institutions sold the illusion & they know that this is the very first basic stepping stone for any new person, thus,
    - the legend goes on.

    On the other hand, at the certain times & at the certain timeframes, the fundamental value of the equities, gets reflected by the same lines. No so often tho.

    Just thinking out loud.
  4. Of course fibs won't work on the flats or sides. If applied properly - it is extremely helpful
  5. Of course Fibs work... "just not 100% perfectly every time"... like noobs "expect... otherwise it's no good".

    As for me, I don't use Fib "projection" levels, but I do use "retracement levels".... they don't work 100% either... but well enough, often enough to be of value.
  6. SunTrader


    I was sleeping, most others I'm sure as well, when this all took place except last one. That only made a 38.2% retracement which was a heads-up prior swing low was going to be taken out. That, and it was a continuation of strong intraday downtrend.
    Nobert likes this.
  7. SunTrader


    They also won't "work" if the proper start/end points are not used. Notice the last one, the spike high was truncated down to bar high open which then lines up next bar's high and the high 3 bars later.
  8. sure, this is actually what I meant in the previous post
    SunTrader likes this.
  9. What is this... a joke I don't get?
  10. easymon1


    #10     May 18, 2022