Hi Splitlink,
Your chart is looking at shorter timeframes. I normally combine Fib with time cycles. In the chart I showed earlier we go 2/3 days down and then we hit a fib level > good chance we bounce off it.
The problem with fibs is like you say how do you know which one to take? There is not an easy answr for this. It depends on market state (choppy or trending), elliot wave structure etc. Can be a study in itself.
The one thing I think could help a lot of people here is to look at larger timeframes and plot fib lines from there. That could give you good points where a market might turn or halt on a day.
Hope this helps (probably not much?)
papak