Why 61.8%? - Page 2
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Thread: Why 61.8%?

  1. #11
    Quote Originally Posted by ;
    Primarily, respect to anyone who claims to trade these amounts successfully and has done so consistently over recent years. I'm yet to find. I agree it is up to every individual trader to prove to himself if presented with signs but a first step would be arrangement or a definition on what swing points are legitimate to use the fib retracement levels too. I stand to be corrected but so far what I've seen just because definition is subjective. If someone reading this thread...
    It's definition is subjective to some great extent because its effectiveness depends on the way the majority of traders draw them. About how to drawn on fib retirements in theory one could go on and on but in the long run it is the consensus of world traders who defines their appliion that is correct.

    That is one reason why I wouldn't trade them on their own (like I wouldn't use MAs by themselves either).However, they might add that additional technical credence into a trade setup which may convince me to pull the trigger, once I would not. Seasoned traders on this forum also look at fibs from various TFs.

    Btw, this also relates to the inaccuracy inherent in drawing on diagonal trend lines, which I wouldn't trade as is .

  2. #12
    Quote Originally Posted by ;
    I have recently really taken an interest from the Fibonacci retracement tool. . .but something has been bugging me, and that's that the 61.8% ratio. What is it about this amount that makes it the most important of all the ratios? I have discovered it be called the golden ratio, but do not understand why. Is there a reason? Or is it something that has been ingrained into the minds of most traders, which the reasons do not matter. I have been trading the EUR/USD because the start of the down trend in December and saw it pretty much discount all of the...
    Both .50 and 61.8% are important for two separate reasons:

    50% is an important level for the simple reason that during price discovery buyers and sellers have a tendency to wind up agreeing in the center of their various bids and offers. That is reflected in any market, not FX. Now this obviously does not necessarily occur in the real world, however it's points to a tendency and the reasoning behind its significance.

    In 61.8% price will be deeply oversold also it's likely it will retrace from that level than from the lower numbered fib levels.

  3. #13
    The 61.8 number is the golden price, and is the most important of all of the fib amounts,
    since if you take all the other fibonacci numbers and divide them, compute them,
    substract and include, you always endup with this 61.8,
    thats why it is regarded as the most important fib.
    You also find the identical number from the pyramids of egypt,
    and just about everything else in the universe.
    50 percent is not really a fibonacci number, it have been inserted by traders,
    since it is considered reasonable price.

    They say all roads leads to rome,
    but each of the amounts leads to 61.8

  4. #14
    Golden ratio is fractalgt;gt;gt;



    iteration or reiteration are other attributes



    furthermore it is asymptotic so it approaches 0 but not quite makes it there....


    I'm not an math expert. Luckily one can just look at the chart

  5. #15
    Yes the math element of 61.8 is significant in math but for traders, it is possible to find and affirm what it is you would like to confirm!!!

    Doses that mean it works 100 percent of the time? NO!!!!

    Thats why it's so important to follow a trading strategy

    Where's price?
    Where do I think price can proceed?
    Up down or sideways?
    When it goes against me I must be discipline.

    There is only 1 type of discipline....perfect field!!

  6. #16
    Quote Originally Posted by ;
    quote FWIW I often concur, one glance in the world and intuitively perceives ultimate causation as being either design or opportunity. However, unlike the poster until you (shanewatson), I don't believe that spiritual or philosophical idea -- or perhaps character -- has any bearing on how predictive (or differently ) Fibo levels are. IMHO markets will be the product of very different belief systems: they represent the result of traders think that price will act henceforth.

    This creates orderflow which subsequently compels price, possibly...
    [/highlight]If a trader can somehow detect where the greatest volumes of orders are being put, and devise a system of entries and exits to exploit this, he'll be profitable. Of course this is not the road to success.

    That I believe to be a sure fact,I also believe that these amounts could be calculated using past /present volume,momentum and liquidity.i think that regardless of the intension and requirment of these particepents they are bound by similar limitations to people retail.if we add time objective and the larger group of partiing particepents are converging to a point in time and price we have such a place you describe. If it falls to a fib level all the better for fib lovers,but I think these amounts are unaware of these things.but as I have stated calculating these amounts concidering paramaters surely helps.coupled together with the overall markets present sentiment reveals enough.

  7. #17
    The matter is more complicated than it se. Leonardo Pisano son of Bonacci, known as the son of Bonacci or Fi'Bonacci, discovered the Golden Sequence. He did it because he wanted to gauge the amount of rabbits could reproduce starting in a given time in a closed environment and from a specified number. The numerical sequence he pointed out wasn't considered the 19th century when quantum phisics and binary calculus were developed. Then some reaserchers started to notice the way his seemingly simple sequence did really appear in uncountable natural configurations, both in geometry (spirals, shells, pendulus deceleration) and in math (disposition of leaves on branches, average raindrop sequences and such). They ran throughout the books and discovered that an Arab mathematician, Ibn al Kwerziz, said that we as humans do not invent mathematics but that mathematics are within the nature of things and we just discover it, just like uncovering a hidden origin of a plant. As stated by al Kwerziz, among the fathers of Algebra, mathematics detrmines and rules reality from inside, just like two apples would be the sum of 1 1 or 3 apples in two bags would be the sum of 2x3=6 and that really is and would be even if we didn't discover arithmetics. Grasping this concept us conside it or understand just how a bizarre mathematical progression that's embedded inside reality wether we know was actually unearthed by Pisano Fi'Bonacci or not. The sequence or harmonics of course are never just accurate but ALWAYS replicate themselves. The same happens with the markets and charts simply because they are a part of reality. There aren't any actual statistics on how many exact times is that they happen the majority of the TIMES making this sequence worth being taken under consideration. :--RRB-
    Quote Originally Posted by ;
    Its a Enormous slab of BS. I mean people talk about fib' retracements. Good luck deriving 0.5 in the fib progression. LOLZ. You might have noticed that is N interval moving averages are popular. I find it funny that some people today think that they relate to some real underlying arrangement. Thats not to mention that you can't use them as an instrument.

  8. #18
    Is the two correction in Elliot wave more frequently shallow, .382, than the 4 seeing a newer cycle?

  9. #19
    Do you understand Pavlov experiment? . In his experiment, Pavlov used a bell. In addition, he rang a bell whenever he gave food to his dogs. Following a number of repeats of this procedure, the bell attempted on its own. As you may anticipate, the bell on its now caused an increase.

    Hence the dog had discovered an association between the bell and the food and also a new behavior was learnt. Since this response was discovered (or conditioned), it is called a conditioned response. The neutral stimulus has become a conditioned stimulus.

    You back to fibonacci, the fibo numbers as become mantras for its traders. The price would proceed towards this numbers before it is resume I trend. We are aware that the market's movement is due to traders plogy. Because of this, we can presume that the fibo series is obeyed. However , not necessary the price should be halt at that level (same as Pavlov Experiment in which the dog is not presented with food but nevertheless the was salivation).

  10. #20
    Do not leave the following a puppy is said,
    schrodinger is its own name.
    Since we did not know where the price will move.

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