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Yes, simply measuring any Fib retracement is entertaining but
not beneficial. You'd be just as happy with random trades.
Fibonacci is only useful under certain situations. Some Fib levels
are a waste of time, unless certain market conditions exist.
I strongly discourage blindly entering a trade at any fib level just
because it is a fib level. This is too dangerous. You only want to
take the more attractive trades, not all trades.
A strong component of my trading plan is the concept called
"CONTEXT". For example, if a chart is reaching a maximum
historical overbought/oversold level, at a SIGNIFICANT Fib level,
it becomes an attractive trade.. Then I watch for a particular trigger,
entering if there are tangible symptoms of a market reversal at
that price-point... Line those ducks up an viola!!!!!!!!
Of course, if you're just looking for easy money, take random
trades (joking).
Best wishes,
-Neal.
At 12:04 PM 4/10/2002 -0700, you wrote:
>On Wednesday, April 10, 2002, 6:57:23 AM, Gary Funck wrote:
>
>GF> I ran a study once, which plotted swings based on a %-filter on
>GF> the NDX, at vrious percent filters (ie, 5%, 10%, 20%), and looked
>GF> at the percentage retracement, expressed as a fraction/ratio, and
>GF> saw no particular clustering around fib. numbers, fwiw.
>
>Nice approach. Seems we have one vote for random. :-)
>
>Thanks,
>
>ztrader
>
>
>
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