Fibonacci thoughts and ideas....

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Originally Posted by ;

I am starting this thread as I am aware that there are several 1KT members who have an in-depth understanding of this way of analysing potential trades.

I am aware that many think it's mumbo-jumbo, but guess that is more to do with too little appreciation of all the factors that need to be thought about.

I also feel that this is a place where newbies can be led astray from the hype surrounding this tool, and hope that 1KT members' input will show them how to properly apply Fibs to their charts.

At this stage I'll leave the door open before sticking my oar in, as I am probably the least qualified to provide advice.

OK guys/gals, it's over for you.

P.S. I am looking for generic concepts here, avoiding copyright issues for known trading methodologies.

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Hi Pete, My name is Bill I am a FibFreak. HOWEVER...
Like the look for the Grail, I think we have yet to find Time 0Zero That [I think] is critcal to ALL Fib Calcs.

some originality

sort of following the fact
but
appears like the fibo fan, fibo retracement plus a fibo timezone shaped a cluster right where price is sittin at right now
https://www.forexforum.co.za/attachments/1518234475.jpg

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Originally Posted by ;

I posted a few fib stuff in a different thread which goes into it a bit more: https://www.forexforum.co.za/trading-systems/1-.html

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I checked out the Bryce Gilmore material as soon as I saw your initial article, but as I could barely draw a correct pair of Fibs nevertheless I believed that things was likely to be outside me.

Thank you for the input

Okay I began again. I take it I have attracted the chart as you called it.

Any prior high (on which you established a FiB) is invalidated from the next high. You'd then redraw the Fibs up to the new high, etc..

When any previous retracement is taken out with a heer retracement (ie the low takes out any prior low) that then becomes a new starting point for new set (Fib 4).

I think the point I am asking is what is the purpose of Fib (1) when Fib (4)) is valid, unless I mis-understood Scott Dopey
https://www.forexforum.co.za/attachments/1518234473.jpg

Dopey eluded to something that's key. To end right you have to start. While each peak and valley can offer some amount of harmonic ratio, you wind up chasing your tail when things do not work from the publiion.

I published some fib stuff in a different thread that goes into it a bit more: https://www.forexforum.co.za/trading-systems/1-.html

Clearly, it could get complex and I believe that thread is all about simple. So my simple tip is to double check against a greater time period. Start on a lowest high or low. Then look previously for a swing of similar proportion and use this as the guide correcting for any current motions that might help specify the current structure. Cluster just against other motions that have a highest hight and a lowest low. I don't think clustering every minor swing does much other than just make a mess, however your mileage might be better than mine.

After I posted the chart, and reread the article, I realised I had posted it and made it sound as a tutorial.

Absolutely not! Like I posted it as a sample of how a chart could be drawn, and maybe mis-construed, I actually wanted the type of feedback you've given me.

This was my point, really. A lot people draw Fibs throughout the area, and believe Ahh confluence (not talking about Jim here) but the majority of the time we might too throw darts at the chart and exchange wherever they stick in.

I want this to be an eduional thread, which will direct us newer folk to the paths of righteousness. Criticism is welcomed, dare I say invited!

When the core methodology of choosing Fibs could be fine on a monthly chart, using relatively easy moves, then as we move to shorter time-frames we could, maybe, see where the real levels hold.

Dopey, Damnit, I do not want to deal with you by that title... LoL

That is a really nice spread sheet. I believe I will write one myself just like it, how you have it layed out is just perfect... I hope you do not mind.

Thanks for posting this.


Peter
I believe what Dopey is stating is there can be just 1 Focus point all the other valleys on your chart are pivot lows. All the other peaks you have used to get a concentrate would be obsolete and replaced with the highest focal stage.

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Originally Posted by ;

Interpretation is the problem here. I understand I have stayed away from Fibs, thus far, as no two people seemed to agree on how best to position them.

So, as Monthly charts are the easiest to start our schooling, I have drawn some Fibs about the attached Cable chart.

I have numbered them as follows:In the past cheapest low to the latest high of the comprehensive move (Black) The (Blue) Fib is the very first one I'd have drawn, assuming I had been in the trade since Sep 2000. It retraced but less far as the 38 level and then continued up into the following (Crimson) high in which it did retrace fully into the 38 level areas of transfer (2) (3) Fib (Green) is the current Fib for the Previous low/high on the Monthly I realise there are moves within moves, rather than a lot people trade the Monthly, but I am trying to get the basics of a correct approach (or at least some sort of consensus) on the way to draw standard Fibs. It's easiest on the Monthly.

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Peter, if I misunderstand you, then please fix me. I understand your post to see that you believe the Fibs with the highs at 1.9145 and 1.9549 are still valid. They're not. The single valid Fibs here are ones that are drawn from the large at 2.0652.

With that high as the focus point, you will find 7 fibs that are valid, just 5 rewarding. There is not a fib confluence within 200 pips of these 5 fibs though.
https://www.forexforum.co.za/attachments/1518234484.jpg

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Originally Posted by ;

As a helpful ramble (and I see BeachBum gets the data on his own chart's fibo tool) if you would like to own MT4 insert the price data to some given fibo level, enter the amounts tab when choosing the fibo tool at add the following:

@percent to some given level may look like this:

38.2 @% $ here you have comprised the fibo percentage in addition to the price data code.

You're able to flip things around the way you like to see it published on the chart.

Cheers,
Thom

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I have this in my live charts but left them off this one for the interest of clarity, but useful advice for people who haven't seen this suggestion before.

Just as a helpful ramble (and I see BeachBum has the data on his chart's fibo instrument) if you would like to own MT4 add the price information to some given fibo degree, go into the amounts tab when selecting the fibo instrument at add the following:

@%$ to some given level might look like that:

38.2 @%$ here you have contained the fibo percent plus the price data code.

You can flip things around the way you prefer to see it published on the chart.

Cheers,
Thom