Fibonnaci

[ciara7]

I am looking for help understanding Fibonnaci. I am new to this and apreciate all I can get.

1)what time frame is best,
2)can it be used for swing trading in 5 and 15 munte frames?
3 I use prosticks charting which allows for projections How do you use them(projections)
4) I have heard time frames what are those

If anyone knows of a class etc it would help. Thanks to all who respond

[jasperforex]

Haven't had chance to use it much myself but I've learnt about it. It can be used for any timeframe but best results come when the whole range measured is at least 100 points as your spread is going to eat into any potential gains you have. I was given an example of how it works with silver and how the bottom was picked with silver when it was still trading at 7 or 8 dollars. I think the market got within 4 or 5 cents of the projection before rallying to where it is now, over 7 dollars. So it can work well.

[bobnat]

Ciara,

Market Trader's Institute offers a course which is heavily based on using Fibs. Do a search for them and look at their stuff.

Fibs work, whether it's self-fufilling prophecy or not, though there are those who argue against them. The fact is that they don't work all the time.

The higher the time frame, the more consistent they become. Using 5 and 15 min frames will show you a lot of Fibs that don't work. Then take a look at the daily and weekly charts and see how they work...it's fascinating.

Nat