Fibonacci line tool - page 5
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Here is an example, almost online. Yesterday I bought after the correction of the 1st wave and the order was closed by TP at 261.8. In this case, both Eliot waves (classical 5-waves and the TP was exactly at the end of the 5th wave) and Fibonacci levels worked very well.
So it turns out that Fibo should be used to determine take-profits and entrance should be established upon breakout of the excess level, but not upon correction?
I also tried to use temporal Fibo levels (how long the previous correction lasts, the next correction is supposed to last as long after which there is an opportunity to enter)
Until there is a clear algorithm for drawing Fibonacci lines, it is impossible to gather statistics about the levels the market feels.
Once the construction points are determined, we can calculate the price behaviour in relation to the levels:
- Pin bars
- Bounces
- Breakdowns
- Reversals
- Correction level in %
- Rise level in %
I collected similar statistics based on МАшиши and partially based on Fibo levels constructed using the algorithm described in this branch https://www.mql5.com/ru/forum/40157 .
There is interesting information but it has not found any practical use. However, the work has not been completed yet. Attached here is one of the statistics on GBPUSD M15 - the MaxKorrect_Proc indicator would be interesting - it shows the depth of correction on the scale of Fibonacci lines (if it is 60, the correction is 40% of the price movement)
There is nothing interesting there, I searched for a long time, at least I checked it thoroughly with the software.
Have you tried the following idea manually/software
- Fibonacci lines are drawn at extremums on a small timeframe, and we identify the levels that have worked out, for example, on the 5th chart the price made a correction to 50%, resumed growth and updated the maximum. After that we switch to a higher timeframe, like 4H or D1 and wait for the 50% touch to enter and then the maximum update. I have checked it a couple of times and it seems to be OK, but these are isolated cases that have been checked.
Have you tried a program/manual idea like this
- Fibonacci lines are drawn at extremums on a small timeframe, and we identify the levels that have worked out, for example, on the 5th chart the price made a correction to 50%, resumed growth and updated the maximum. After that we switch to a higher timeframe, like 4H or D1 and wait for the 50% touch to enter and then update the maximum. I have checked it a couple of times - everything seems ok, but these are single cases that have been checked.
Haven't tried it. In Fibonacci the main problem is determining where the trend section is.
It often turns out like in the picture (there is strictly a trend up 1 hour chart that breaks through, it concerns not only this example, there are a lot of such areas on the charts):
although if we go to the 4 hour chart, we see that the trend is downwards
and if we go to the daily chart, the trend is up
And it is necessary to get the average number of bars on each chart, where the main motion will be located, and this is difficult, because sometimes the trend is short, but the value of the traversed path is equal to a long trend, which has many times more bars, but the amplitude is the same.
I should say right away that I checked it programmatically when the price touches the correction level, i.e. when it is entered and not when it is broken.
.....
And we need to get the average number of bars on each chart, where the main movement will be, but this is difficult, because sometimes the trend is short, but the value of the traversed path is equal to a long trend, in which there are many times more bars, but the amplitude is the same.
I should say right away that I checked it programmatically when the price touches the correction level, i.e. entry is made at it and not at breakout.
Why complicate our lives, no one knows the future, we can only guess and set the task to determine the average number of bars, to determine where the trend is and where there will be a flat - this is not a solvable task. But I must note that the books on Eliot and Fibonacci contain instructions for using time interval.
I guess you just have to work out what you currently have. I kept thinking about using counter Fibonacci lines and always paying at least one no loss or one stop loss, but then I realised that's not a solution either. I always work on a bounce rather than a breakdown too.
Why complicate our lives, no one knows the future, we can only speculate and set the task of determining the average number of bars, to determine where the trend will be and where there will be a flat - this is all an unsolvable task. But I note that the books on Eliot and Fibonacci have instructions for the use of time interval.
But, that is the point, in order to programmatically calculate the expected trend and its correction, we need the number of bars to search for.
Opposite lines are when a smaller trend is in the main move and its correction and its levels are compared to the main move, where the lines coincide that level is more significant?
But, that's the thing, in order to calculate the expected trend and its correction programmatically, you need the number of bars to search.
And the standard Zig-Zag does not help in this case, despite the fact that it has its own problems.
I tried using Zig-Zag, but it is very resource intensive and its rays are redrawn, which is not informative for me. I think the Zig-Zag also uses the number of bars for searching?
You can try to use fractals, but it should be possible to adjust the number of bars around the fractal.
So it turns out that Fibo should be used to determine Take Profits and should be entered after the breach of the High, not during a correction?
I also tried to use temporal Fibo levels (how long the previous correction lasts, the next correction is supposed to last as long after which there is an opportunity to enter)
I haven't tried it. In Fibonacci the main problem is to determine where the trend section is.
Often it turns out like in the picture (there is a strictly up-trending 1 hour chart that breaks through, this applies not only to this example, there are many such areas on the charts):
although if we go to the 4 hour chart, we see that the trend is downwards
and if we go to the daily chart, the trend is up