Hi,
I’ve been trying to get some details on how to apply Fib Time Studies to my charts. There are a couple of general articles on websites I’ve visited, but none of them really get into the actual mechanics of where to place Fib Time Studies on your chart. Does anyone know where (website, book, etc.) I might find some good info on this topic?
Many thanks,
Jennifer
this is a positive answer (to underscore the underlying reason; capital preservation)
I strongly reco that you steer clear of Fibonacci time series, especially if you are collating trading methodology. The whole point of a time series calc is to map. You must then know where to place the map. Get the start point wrong, the rest is poisoned fruit.
All Fibonacci studies are a linear approach to trading....in fact that would be true of any study where people are involved. Whilest there is clear evidence that Fibonacci ratios and the various calculi can clearly display robust fractal growth and regression this is sucessful in a hindsight clinic. Forecasting takes into account much more than applying a linear tool. An application of a stringent linear tool calls for the trader to ignore the dynamics fo price movement. Of course protagonists will cry foul that the very nature of Pisano Fibonacci work is based in the structure of human growth and regression. However, to apply that in a foward look when you have no proof that the current projection is correct is called gambling with a "permission machine" in other words you take the trades based on the permission that the machine gave and not your knowledge of how/who is moving price. The tool does not relocate or advise that the evidence is changed and you must decide that the evidence is there for you to continue. So, when you deduce the evidence in your favour of probabilities then, in all likelyhood, you don't require the linear tool. I ascribe this to all Fibonacci calculi.
Again, much the same way that RN Elliott has given us fractals, with great power, I can show you clear evidence of how many of the greatest (and well-marketed) stalwarts of these techniques base their strategem on pure discipline and rely soley on their linear instruments to enter and exit trades. This is a costly exercise. Lose your discipline or change your interpretation, fractionally, the whole concept of the trade is fragile.
Now, interpretion, what a great word that is.....you must interpret the employ of any Fibonacci calculi and I say this because you are placing the map onto the future. The map (series or grid, call "it" what you like) is linear. The price is not linear. You are not linear. The players are not linear.
While it is true that the human face/body et al do apply to Elliotts and Fibonacci tendral and a-specific spirals and recurring shapes of nature even planetary systems thos things are static compared to a dynamic price in an unknown future.
If a tool worked well enough, is there a possibility that its employ would already be far and wide in use, that, you would not have to ask where to find providers?
More importantly if a tool was so successful, in the trading arena, I can tell you, from critical experience, that once a tool is discovered/uncovered that bigger fish, who eat smaller fish, would already be exploiting the employment of that same tool.
One important point that I learnt in regards to Fibonacci and RN Elliott works is that all parts of their theorems are active at all times and YOU, the trader, must know which parts are dominating at any given time and then place that forward look onto an unknown and dynamic price.
This is for your consideration and in no way undermines the value of these studies in tertiary environments to validate human growth and regression. That, of course, is not the same as trading your account.
.....this is an opinion.
Joules
