I need everyone's input on how they trade fibonacci retracement levels

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Hi team,

I would like everyone's input into the successful methods they have used with fibonacci.

I'm trying to create a super in-depth guide that would once and for all cover all the necessary ways and methods that people have traded the fibonacci retracements/extensions profitably.

Personally, I've worked with banks and hedge funds on the technical analysis side and combine Elliott Wave theory with fibonacci laws to great effect, although I think that there is a lot more to it than just using the extremely complicated Elliott Wave theory and admittedly, I'm not very familiar with the other methods and ways they can be used (harmonics anyone?)

If you're interested, I have written my own guide and will continue to add to it all the valuable information I can get here : How to use fibonacci retracement in forex

So guys, what methods do you use?

 

Why you want to write yet another comprehension to Fibonacci? There are thousands. Why you don't write something about Elliot Waves? There are only a few and mostly pretty superficial.

 
krelian99:
Why you want to write yet another comprehension to Fibonacci? There are thousands. Why you don't write something about Elliot Waves? There are only a few and mostly pretty superficial.

Hi Krelian99, the page I wrote was based on fibonacci retracement levels and elliott waves principles. Elliott Wave is tricky because there are just so many rules but perhaps I'll write one entire article dedicated to it.

I'm also very interested in knowing the different ways people use fibonacci retracement levels besides through Elliott Wave. Although it seems like most people simply use them as they are (standard retracement levels) without much thought into the different relationships each retracement level has.

 

Yes, new traders see Fibo levels and Harmonic waves or other chart patterns as autonomous, but they weren't. They occur at certain places in the Elliot wave cycle. If you know where, it is much easier to recognize the waves and which of the TPs (which is also nothing more than retracement levels as the whole pattern) of the Harmonic wave is most likely in the situation. Elliot comprehenses a lot and that makes it so powerful. It is at first a lot of work to do on the chart but once you have it, it is very easy to continue and clean (not really but pretty clean). And that's the point most retail traders fear. Simplicity on the chart and a structure behind the so called chaos. Even on M1 is not much chaos. IMO, D1 is more chaotic than M1 and I know that at least one guy (his name begins with m and ends with laden) would bent me over his knee for this statement but on D1 the political decisions and the long term central bank movements rules more which aren't Elliot or Fibo friendly. But this is my view and I'm still learning the markets.

So, it is some work if you want to do your guide suitable

 

Haha that's very true. Elliott Wave makes sense of the chaos that the market is in, especially when you ensure there is coherence from the 1 week charts to daily, 4 hourly, 1 hourly and then the smaller time frames. Everything has to obey the rules of the larger time frame and once you have all that set up, it is much easier to manage.

I find M1 quite tough to manage because of how quick it moves, my sweet spot is about the 5 to 15 minute charts although it's also very tough to ensure it obeys the hourly charts haha. I do agree that the political decisions really do affect the market a lot, I know of many Elliott Wave theorist that have been betting their lives on Nikkei not breaking 16400 and 16000 but it just has so that's very scary too.

I do like the idea of creating an easier to understand guide Automation of such a system is near impossible because of the many different variations to every single wave structure but then again, once you get the hang of it, you do see the tremendous beauty in it

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