Fibonacci-Trader Discussion Board

[niceguy777]

Not sure yet but I'm looking to look for supply/demand indicator to pull the trigger on fib cycles.

Well, good luck with that. You can also do the same with the Absolute Fibonacci Framework. There are some samples on our website (check out the YouTube videos).

 

[Fast Eddy]

Thanks!

 

[carbonmimetic]

Thanks!

Nobody uses Harmonic Hanalizer?

 

[iwantu2brich]

The main problem people have in using fibs.. is correctly identifying the current degree in with to calculate retracements or projections of ratio's.

Besides most don't have a clue if the market makes a 63.4% for example.
How many times have you seen the market just go past 61.8% but stop on 63.4 or 63.6%??
63.4% tells us is working on the ratio's of Root 3... In the 63.6% its half the square root of 161.8 which is 127.2...

Just a small example on how big this subject is...
BTW there's nothing Sandy uses which has not already been mentioned on these boards....

IMHO you need to have a basic understanding of wave principle, gnomonic expansion & Arithmetic /Harmonic proportion to maximise the effectiveness of ratio's based on phi.

CJ

Yes it is big, so this is years of studding, like your say. I expand this for simpler understanding. Complete kit for me is:

1.Formation study (based in this case on Fibonacci ratios)
2.Retracement study
3.Clustering multiple retracement to one cluster (clustering)
4.Context (where is trend and witch time frames)
5.Psychology

You see, market have hidden secret I've found, it makes simple 3D geometric forms using 2D chart compared form price and time, and "There Is Nothing New Under The Sun". So when you teach your brain how to recognize this forms, you will play it, but not beat it!

 

[niceguy777]

Guys, there are hundreds of 'methods' you can use, but what I have found over the years is that they are simply looking for parts of the Absolute Fibonacci Framework, and you don't need to do all the clever stuff that's mentioned here.

I think a lot of traders are obsessed with finding complicated ways....

 

[waverider]

Fibonacci works but only in the sense of being a self-fulfilling prophecy, similar to round numbers and 'big' numbers (10000 Dow etc). The more people look for a turn at a given level the more likely it is to happen there. There's nothing magical in it, but anything that skews the odds such that we can try and exploit that skew is useful. .618 appears to me to have the biggest impact.

 

[niceguy777]

Sorry, waverider, but thats.... er..... not true. If you use it the 'conventional' way. I am sure all these conclusions are reasonable though.

:0)

 

[er2wizard]

Considering the Market is manipulated, and the market is made up of people, people are creatures of habit. Without going into Elliott Wave theory, let's just assume that's a given.People are predictable and for that reason the markets are predictable. Fib extensions and retracements used in their simplest form (lots of complicated theories above) can be used as clear road signs telling the trader what is going to happen next. They have clearly been proven to be extremely accurate. I trade the TF e-mini and all my entries and exits revolve around fibs. using a 5 tick stop loss. I do get stopped out occasionally but the ratio is somewhere around 8 out of ten successful entries. The point is that people are so predictable that the market repeats itself day after day after day. Fibs are a valuable tool that enables the trader to read and measure the upcoming moves with amazing predictability. IMHO

 

[CSL]

I have used Fib for a long time to set exit points and have found them to be very accurate. For example in my last play, which was short the market I set my exit at just above a 50% retrace in this case, and the market dipped just to that. I find setting my exit just a bit ahead of one of the the Fibonacci points will usually pay.

 

[hokid]

Im also looking forward to these discussions, and hope to be able to make some positive contributions in the near future.

It is easy to use fib in single time frame, but of course there are much more complicate method that teached by the pros which I don't know. The key points of fib is the precised SL &TP are predetermined.(I hope I am correct)

 

[natureboy]

anyone use DiNapoli levels? I think they are when the 618 and 382 form confluence.

 

[ruian]

--------------------------------------------------------------------------------

i am very sorry to ask this question..i am relative new to fib but i hope someone can help me with it..

1)how do you constitutes a bounce or test of the fib line??

lets say price go past the long fib line and later close below it..this is a bounce or test of the long fib line am i right??

Only when price close above it then it's considered a break of the long fib line am right??

2)What about if price did not go past any fib line? As in it jus move up and down without even touching any fib line? i jus don care about this candle and that is not a bounce or test am i right?

3)one last question..EG..wait for candle to close below the 50% fib and wait for a retrace to this level and enter on the RETRACE..in this case what does retrace means?does it mean that the candle after the close candle(mention above) needs to move past the 50% fib line and come back or jus need to move above the close of the previous candle and come back before i enter on the price level of the close candle(mention above) ? WHY CANT I ENTER ON THE CLOSE OF THE CANDLE AND NEED TO WAIT FOR PRICE TO RETRACE BEFORE ENTERING??



Sorry but i am really confused and hope someone can help me with this explanation. If possible teach me through a chart..

Your help is greatly appreciated =)

 

[mozthetrader]

Ruian - the questions you are asking are very subjective in nature. How are you drawing the Fibos? It is important to know and understand how to use Fibos to use them effectively. Depending on the trading strategy (and also depending on the trading plan) one could take the entry or the exit based on the confluence of the Fibos, which could provide the entry or an exist target.

For Fibonacci you could use the following tools (google them):

1 - Retracement
2 - Extensions
3 - Projections

Could you try posting the chart you might have been using?

 

[bwallace530]

How do I set up my FIB. It looks really confusing and I do not know how to change it up.

 

[mozthetrader]

To illustrate the Fibs, I am attaching the chart for the Silver spot.Note, I am using points A,a and B,b for the illustration purpose to show the line segment A-B and a-b.

The way people use and plot the Fibs vary a lot. For me, I usually look at the trend. Being plotted low to high I am looking for an area for support. From High to Low, I am looking for an area for resistence. But this also depends on the FIb settings on the package.

Notice, for this rather strong up trend, we had an obvious low point @36.44. Choosing the right bar could be bit subjective, in this particular case this pin bar was well formed (on a daily basis) and marked a clear up trend of higher highs and higher lows. Point B is the obvious top.

Looking at the sell off which took place at B, Fibs could be used as a guide to find out how low the market could retrace back the current up trend so that one could prepare for a move to enter the market to rejoin the trend (this depends on your trading strategy of course). It could be seen on a daily chart, market retraced back to 38.2% for the segment A-B, formed a base and went higher. The next day close also held the 38.2% level.

You could also calculate this manually, B (49.88)- A (36.44) = 13.44. 13.44 multiply by 0.382 = 5.134. Minus from B (49.88 - 5.134 = 44.745). Note, I have not used the full precision of numbers from the chart.

Also, a lot of people use Fibs in confluence, note, a-b 50% (not a Fib number but commonly used) retracement is very close to the 38.2% retracement of A-B. Hope this helps. This for illustration purpose and just a view on the application of Fib.

 

[troyresearch]

Hi everyone

Am newer to using Fibs and have just discovered this thread.

Have I marked up these charts for the DJIA and S&P 500 correctly? So we are indeed seeing the beginnings of a bounce from the zero line?

 

[mozthetrader]

Hi everyone

Am newer to using Fibs and have just discovered this thread.

Have I marked up these charts for the DJIA and S&P 500 correctly? So we are indeed seeing the beginnings of a bounce from the zero line?

Hi,

This is how I analysed INDU:

1 - Attached is the daily chart of $INDU
2 - I've labeled ABCD and 123 etc. Please note this is for reference and not an attempt on the Elliot wave count so should not be confused with it.
3 - Notice C marks the 38.2% retracement of the AB.
4 - Friday's close also found support at the level and closed above it.
5 - Also note that 4 also marks the 100% Alternate price projection of the move CD (or a 100% retracement of the move).
6 - The current trend has been downward with short lived rallies.
7 - Interesting thing to note about these rallies is that they have similar amplitude or symmetry 1=1.
8 - When the amplitue of the moves is taken and then projected from 6 downward, the 1.618% projection comes around the 12150 area, the market closed above these levels (slightly so)
9 - Given these Fibo ratios we have a good confluence level for support or a bounce back. The bounce back is likely to be terminated at 38.2% of AD or a stronger resistance comes around 12400 area.
10 - The market may break down to the 61.8% retracement level of AD on the intraday level basis. A close up could mark a rebound which could be short lived.

Also notice the momentum is flatenning. For the bounces seen the momentum has given good clues. I use the momentum indicator as price precedes momentum (from experience).

I hope you will find this helpful.

 

[moogy]

Dear Trendie

Re your comment

I am a little uncertain whether we should openly discuss Sandys specific training.
The reason for this is copyright: If we discuss enough detail, are we not giving away Sandys methods, for nothing ?

Do you think that Retracement, extension and projection are invention's and methods know an devised by Sandy?
Perhaps you should read some books by Robert Miner and Carolyn Broden?
I am not being offensive to you , I am just a little peeved that I spent a lot of money on Sandy's course and then found I could have learned ten times more for ten times less by buying two books.

Good luck in all your trades, I hope you keep winning

Moogy

 

[moogy]

Oh Dear,

How heavily censored is this site? I ask as my last post has disappeared??
How strange

Moogy

 

[moogy]

Dear,All



Reading your fib discussions, I have seen heard no reference of trading in two time frames with two entry tranches a long term and a short term ( or two contracts if your from the US of A).
Does Sandy teach Dual time frame, short term , long term entry trading?

Regards Moogy