Yes I am making money but I am not using fibo. But since I am just bumping around waiting for prices to move, why not make myself useful and pick up something? Since you happen to be an expert in this area, I thought I would just ask this by-the-way.
And I play all instruments........ I just feel
MT4 offers too few pairs. :P
And below is what my broker told me, pasted here wholesale. If you would be nice, pray tell what is right and what is wrong. If you are not free, oh well...
Fibonacci numbers are commonly used in Technical Analysis to determine potential support, resistance, and price objectives. 38.2% retracements usually imply that the prior trend will continue, 61.8% retracements imply a new trend is establishing itself. A 50% retracement implies indecision. 38.2% retracements are considered natural retracements in a healthy trend.
Essentially the Fibonacci retracement is best for determining when a trend is likely to resume. If there is a strong uptrend and the market starts to fall towards the 38.2% line, an ideal case would show the price dip just below the Fib line before buyers step back in and drive the price back up towards the top of the trend.
The three major Fib levels are all possible places to enter a trade. In the perfect situation, the price will fall just below any one of the levels, and once it moves back above you can buy to enter the trade. To be more conservative, you can wait for the hourly or daily candle to close above the line.