Fibonacci levels
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Anybody familiar with use of fibonaci levels in trading??
I can plot those in MetaTrader 4, but I have no idea how to work with it…
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Sure. Used them a bunch back in the days with real stocks.
The idea is that after a signifigant price movement, support and resistance will often be found at ratios of 1:1.6 of the prior price movement, also known as the golden ratio or the golden mean.
To use the tool on a bear chart, drag the fibbonachi retracement from the high to the low, and you should see numbers at 61.8%, 50%, and 38.2%, which you can often expect to find support/resistance at. So for instance, if the chart went from 50 to 40, and you assume this is a barish chart, you could expect to see resistance when returning to 56is (61%), and support at 53ish (38.2%). If it hits resistance at 61%, and then breaks that support line at 38%, you can expect a return to the 0% line.
The same thing works on a bull chart, except now you’re going from low to high, and you’re projecting where the new resistance will fall (resistance at 61%, support at 38%… if it breaks through the 61% resistance, you can expect a rise to 100% of the growth).
For more information, study Elliot Wave theory: [url=http://en.wikipedia.org/wiki/Elliott_wave_principle]http://en.wikipedia.org/wiki/Elliott_wave_principle[/url]
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[quote name=“Kevlar” post=“35416” timestamp=“1385057478”]
For more information, study Elliot Wave theory: [url=http://en.wikipedia.org/wiki/Elliott_wave_principle]http://en.wikipedia.org/wiki/Elliott_wave_principle[/url]
[/quote]Hell, this is interseting stuff…
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I think this picture is self-explanatory:
[attachment deleted by admin]
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I tried to apply Fibonacci fan lines on BTC chart manualy.
Yes, manualy, with pen, ruler and calculator ;)
And it seems to be working very well ![attachment deleted by admin]
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Welcome to technical analysis. It’s good stuff.
So, here’s the exciting part: All rational markets follow these patterns with striking regularity. It’s amazing just how often you can find these patterns being followed to the decimal point.
And here the scary part: Markets don’t always act rationally. Prior trends are no guarantee of future trends. Previous rational movements are frequently followed by irrational movements due to market manipulation. This is especially true when you introduce bots into the scene, which is what’s happened with the stock market. So while this may work for now, there’s no guarantee that it will continue to work.
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[quote name=“Kevlar” post=“36128” timestamp=“1385296013”]
Welcome to technical analysis. It’s good stuff.So, here’s the exciting part: All rational markets follow these patterns with striking regularity. It’s amazing just how often you can find these patterns being followed to the decimal point.
And here the scary part: Markets don’t always act rationally. Prior trends are no guarantee of future trends. Previous rational movements are frequently followed by irrational movements due to market manipulation. This is especially true when you introduce bots into the scene, which is what’s happened with the stock market. So while this may work for now, there’s no guarantee that it will continue to work.
[/quote]Well I was really lucky last 2 weeks compared with previous half year of struggeling. I literally doubled my $ using very stupid metod: 1st screen bitcoin wisdom, 2nd screen btc-e, watching for panic dips to buy cheap and then sell very fast with any kind of gain. But sometimes I set my buy level to low or sell order to high. I think this stuff can definitely help me a lot. On the other hand I have no idea how often to make fibonacci and on what ratio. Maybe now is time to make new chart using 899 as high and 745 as low?? Who knows…
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[quote name=“mirrax” post=“36172” timestamp=“1385310873”]
…watching for panic dips to buy cheap and then sell very fast with any kind of gain.
[/quote]There’s an old saying: No one ever went broke taking profits.
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Screw pen and ruler, MT4 FTW:
[url=http://www.mql5.com/en/charts/1264736/btcusd-h4-distel-enterprise?bind=1]http://www.mql5.com/en/charts/1264736/btcusd-h4-distel-enterprise?bind=1[/url]
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[url=http://www.mql5.com/en/charts/1264838/btcusd-m15-distel-enterprise]http://www.mql5.com/en/charts/1264838/btcusd-m15-distel-enterprise[/url]
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What are other thoughts on Fibocanni in different situations? Nature, betting etc.
Lets delve on it some more, ‘cos I started to think of this:
[url=http://www.pinnaclesports.com/online-betting-articles/02-2013/fibonacci-betting.aspx]http://www.pinnaclesports.com/online-betting-articles/02-2013/fibonacci-betting.aspx[/url]
To me, that system is also an example of how rich can get richer. It works well if you can always pay for the next step. Actually you wouldn’t have to follow the Fibocanni numbers with a bottomless wallet, it doesn’t matter because you can always pay to recuperate the previous losses. Might as well double or triple the figure every time.Btw I’m no mathematician, so please correct me.
I figured that system can be improved upon so it’s more viable to people with limited funds. Using a different sequence in numbers to limit loss is one. Another is to use statistics that are freely available to make the decision on which teams to play on.
e.g. Looking at a site I see that Brentford has gone 8 games without a draw.
Because each game has the element of the unknown, there will always be the possibility of three different outcomes.
However, each time Brentford wins or loses, they are getting closer to the draw.Wouldn’t time have something to do with the equation? And what would it look like? Am I making any sense?
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I’ve got just the thing to answer this question.
My Dicer library is purpose built for just this. https://github.com/tsavo/dicer
Making a new betting strategy, like the Fibonacci strategy, is trivial. You can pair that with the local random source, and test out your betting strategies in a completely fair way. And when you’re ready to take it to the tables, you can hook it up to any API that supports betting, and turn the same code lose on the real thing.
Now, you want the pro-tip? Unless you have a bank roll that can go for extremely long losses, you’ll almost assuredly bust much sooner than you would likely predict. That’s why the local strategy is best for trying out new strategies.
There’s already a Martingale strategy in there, it would be trivial to modify it to a Fibonacci sequence instead.
Best of luck!
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[url=http://bitcoinwisdom.com/]Bitcoin Wisdom[/url] also has Fibonacci levels, one of the small buttons to the right of the Tools menu, second from right.
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[quote name=“chrisj” post=“51214” timestamp=“1389360297”]
[url=http://bitcoinwisdom.com/]Bitcoin Wisdom[/url] also has Fibonacci levels, one of the small buttons to the right of the Tools menu, second from right.
[/quote]Nice, it must be very fresh :)
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[quote name=“mirrax” post=“51278” timestamp=“1389384553”]
Nice, it must be very fresh :)
[/quote]I think it was introduced in the last day or so.
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Up or down?
[img]http://charts.mql5.com/3/549/btcusd-m15-distel-enterprise.png[/img]
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Up. Remember with markets it’s all about bringing the future in to the present, the long term with teh shot term.
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[center][IMG]http://i.imgur.com/ikGG5z5.png[/img][/center]
Here we go for another push.
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I don’t think I did it right but everyone else is doing it and I like drawing lines on graphs =^-^=
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So ve break the epic suport marked by two blue rectangles, but very fast it falled down and now it is consolidating on lower level.
[img]http://charts.mql5.com/3/551/btcusd-m15-distel-enterprise.png[/img]