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At 04:10 PM 12/20/2001 -0800, DH wrote:
> > Obviously you've never heard of the .786 or many other aspects of FIBS
>
>Draw enough lines on the chart and the price is bound to turn at one of
>them. :-)
>
>--
> Dennis
OK I'll bite!
Only for the open-minded, see some great Fibonacci market studies here:-
http://www.fibnodes.com/
and here:
http://www.fibnodes.com/archives.html
Most traders who have minimal knowledge of Fibonacci will conclude that
Fibs work sometimes and not other times. Actually that is true of all
indicators. But Fibonacci studies done correctly are very helpful, as many
traders know.
Unfortunately most charting packages do not do Fibonacci studies well, and
most actually calculate the expansions incorrectly. The Fib studies in
TradeStation and MetaStock are almost adequate for the most basic applications.
But don't expect to nail the markets that way.
You can't expect to throw an indicator on a chart and make tons of money.
No indicator. You can improve your odds if you do it correctly though.
Fibonacci helped me buy Boeing (BA) near the bottom when everyone was
panicked about the Sept-11 tragedy. Just one example... I don't know how
else you'd make a bold decision in such markets. It takes a LEADING
indicator to provide probable/possible turning points in the future. If you
want
an edge over the majority of traders, diversify away from LAGGING indicators.
If you want to be average... Well, we know how the average trader performs...
But before you can learn, you first need an open mind. Not a gullible mind,
but also not a closed mind.
Best wishes of the season!
-Neal.
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