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Originally Posted by MickMason
To a trader any indicator which doesn't indicate with some degree of accuracy can only be classified as garbage. Ok, that aside, looking at Fibonacci levels in various time frames shows beyond any doubt that even in their simplest form they still have a high degree of accuracy. Their use is widespread among technicians and traders, it's no secret, yet still they maintain that high degree of accuracy after all these years. If time erodes the efficiency of an indicator, as you suggest, why should Fibonacci be any different?
Mick
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I am running tick by tick data on Fibonacci retracements and the results show hope.... Anyhow, I think that Fib are based on solid psychology rather than some math abstractions that bear no relevance here. That is why they seem to work. People feel more a strong retracement then some math abstraction showing a negative graph. And of couse there is some correlation between fib numbers and nature while there aren't such for some MacD or something.