clarification needed on trading with fibs

[foamgod]

Fibo doesn't seem to be the thing most people "start" with. :P

[DaveB]

To be honest foamgod, I've looked at other indicators such as stoch's, momentum, rsi etc. which are ok but not my style. On the other hand, from my studies and demo practice I have found that support and resistance, channels, trend line breaks are more my style. But now, having come across fibonacci and elliot wave analysis I 'think' that I have found what I am looking for. I seem to be comfortable with the theory that supports fibonacci and the idea of trading 'bounces' of fib levels and being able to work out, with some degree of accuracy where price might end up, and therefore exit levels. It can be as basic or complicated as you want to make it, and there's no scrutinising two or three indicators for minute tick ups or divergence like on the momentum indicator, macd, and others.

As Mick points out, fibs can be basic whilst at the same time provide an effective and profitable trading strategy (hope I got one that right Mick, I guess you are profitable being able to pay your bills etc )

Hopefully, when I begin trading fibs I can, I do ok. At the moment, I don't see no reason why not

Rgds,
Dave

[Matsu]

Here are two articles on Fibonacci which I just came across:

PREDICTING TURNING POINTS WITH FIBONACCI: FACT OR FICTION?

Trading Fibonacci Confluence - As Easy as ABC?


Regards,

Matsu

[MickMason]

Originally Posted by DaveB

As Mick points out, fibs can be basic whilst at the same time provide an effective and profitable trading strategy (hope I got one that right Mick, I guess you are profitable being able to pay your bills etc )

I have my moments!

I think what attracted me to Fibonacci ratios in the first place was their pure simplicity. There was also something quite romantic about using an ancient mystical and magical formula discovered centuries ago by an (at the time) insignificant and ridiculed Italian, to use them in a fast-paced technologically and scientifically advanced world seemed ironic somehow!


Mick

[MickMason]

Originally Posted by Matsu

Here are two articles on Fibonacci which I just came across:

PREDICTING TURNING POINTS WITH FIBONACCI: FACT OR FICTION?

Trading Fibonacci Confluence - As Easy as ABC?


Regards,

Matsu

A couple of good links there Matsu, thanks, have you used or seen their 'T-3 Fibs ProTrader' software?


Mick

[Matsu]

Originally Posted by MickMason

A couple of good links there Matsu, thanks, have you used or seen their 'T-3 Fibs ProTrader' software?


Mick

No Mick. This is the first time I came across it. I hope my previous message didn't come across as an endorsement or promotion of the software by others.


Regards,

Matsu

[foamgod]

Well I wish you success DaveB.

Try starting a trading journal (I can steal some pointers too haha).

[DaveB]

Thanks foamgod, and thank you Matsu for those links. With regard to starting a journal I would like that, but having said that, I work for a living at the moment so my time is restricted. When I do get to trade (with confidence), I will may consider doing a journal after I have gained enough experience to really know what I am talking about (in my opinion) Having said that, trading with fibs really does seem my style and even though I am 'part-time' or even less than part-time, some might say, it won't be long before I am getting valable real time trading experience using what I think is a great simple and basic trading strategy.

regds,
dave