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Forget Fibo retracements - the market knows

Chart Forum » Chart Patterns » Fibonacci Retracement__How? » Forget Fibo retracements - the market knows

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trend_trader

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Post Number: 1
Registered: 03-2007

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Votes: 0


Thursday, March 01, 2007 - 12:44 pm:

A small point - Fibo ratios are intrinsically built into the market. Use the long term charts to find support and resistance levels and you find the fibo levels are approx. the same if your any good at seeing consolidation and s/r levels. In effect, if you think about it, Fibo levels have been established historically already, so it is almost preferential to set r/s lines using historic patterns/levels and long term time period charts than it is to go off setting levels based on recent highs and lows. Therein you can use both to test the strength of the level and its validity - check the period of time previous levels held or constrained for to verify strength at present levels.