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i agree with ya there like it's like cheating!!!! :)))
what i meant by "self-fulfilling" is that the floor and major off-floor
players know where the key fib levels exist on most timeframes, so, in a
sense, the floor and big money move price to those levels....what's important
is what happens next at those levels...price is either repelled by a fib
level (reversal), or price is repelled and then accelerates through that
level like a knife through hot butter (successful test or bounce followed
by a failure), or price blows through the level like it doesn't exist (stop
run or bid/offer vacuum). from experience by observing price, you can get
a feeling for what might happen at the fib levels.
of course, this same discussion can be applied to well known pivot points
as well.
TJ
At Sun, 30 Jan 2000 09:15:50 -0800, Neal Hughes <neal@xxxxxxxxxxxxx> wrote:
>Some would disagree that fib analysis is a self-fulfilling prophesy..
>There are many who believe that the more a certain technique is
>used (more traders using it) the less likely it will work in the markets..
>There is a conflict there, a trader can't believe both..
>
>Any-way, for whatever reason, Fibs work well in all liquid markets!
>One trader I know said "it's like cheating!"
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