MightyOne wrote:noone22 wrote:es/pip wrote:I agree that fibs dont matter
OK, discretiaonal traders don't believe in Fibs.
The most funny definition of Fib and pivot lines,
I've ever heard is something like this:
They don't exist in reality, they are imaginery,
calculated & created by some "gurus",
exist on paper and in the books only,
but because too many traders read and heard about them,
they (traders) are watching these levels and putting
their orders (both Buy & Sell ones) in close proximity
of these lines, and that's why they (lines) are working for some
or not working for the majority of others.
It's seems to be some kind of special "zero-fib-line",
where ones are taking profit, and others are grabbing
profit from them.
I'm not discretional trader, but I'm starting to believe
in the above definition more & more.
Noone22 I know that you want to believe it is real but it is just a load of crap.
Once you understand the mind of the breakout / retracement trader and the magnitude of the chart (daily+ extremes) then you have everything.
I think I see it, price breaks down and makes it to the 38% line, breakout traders move their stops to 0/5/10 (whatever) thinking they are onto a winner cos price has hit a magical fib level and get zeroed (some stalling), those that dont move their stops and get hit cause those stalls in the price as it continues up. The SL numbers are common stop levels in conventional trading... "psychological stops"
Am I actually SEEing peoples stops getting hit? Or am I manufacturing it to explain the stalls?
G. (edited to add quote)