I have been questioning myself again and again .
There is not any logical explanation for why it works/does not work. Because everybody uses them the most answer from people is.
How about you personally? Do you believe in Fib?
If yes, what's the most reason why you think it works, besides the common reason over?
If no, what's your reason?
I personally never used Fib as an indior, because I feel these so called golden ratios are only illusions or make any sense in term of trading and market sentiment.
For example:Elliot Wave can work because it's about details of how people trade. So one attempts to get back to the balance point where Demand or Supply has transcend its possible because it indies s/R works. Trend works because once it's formed, it indies one nation advantage over the other, and it'll take a lot of efforts/money to get a nation. MA works because... well, as its name: Moving Average. Once a price has broken down the MA line - i.e. its balance point/average point/momentum stage - that means a new trend has formed and price tends to move away from it.
For Fib, I cant think of any reason. I constitute the subsequent theory to explain to myself why people believe in Fib: originally back in 1800 so when people began trading, there was no indior so the government used Fib to drive the market (i.e. if a product price increases 61percent its initial price, the Gov knows market is getting inflation so they begin to act to push the price down?) Then people/traders began to use Fib then those traders became large boys, over time you will find new more accurate indiiors but people still use Fib, because these big boys are now familiar with old tools thus now where people still use this (illogical-nonsense golden ratio) Fib?
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