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----- Original Message -----
From: ztrader
To: realtraders@xxxxxxxxxxxxxxx
Sent: Monday, April 15, 2002 11:57 PM
Subject: Re[2]: [RT] Programming Fibs
>If I may reinterpret a bit, are you saying that fibs, *by themselves*,
>are not that good?
For me, it depends how and where I use it. If I've received an entry signal
and a move in a certain direction is confirmed, I'll use a Fib retracement
*by itself* to enter and a Fib line as an initial stop. As long as the entry
conditions remain true, my limit order will stay in place. As far as just
drawing a Fib retracement from a swing high is concerned, no, I wouldn't
trade that with a resting order. I've seen price blast through these levels
far too many times for my liking. However, if price pauses at a significant
Fib point, and I see other evidence of an end to the retracement, I'll trade
the counter move (with another Fib entry).
>Are you saying that (1) the fib increases the probability by being
>coincident with the other indicator, but is not enough by itself, or
>(2) the presence of the other indicator makes the fib significantly
>more reliable [the fib works better than usual when the other
>indicator is doing something]?
(1) is certainly true for me. The Fib retracement by itself is of no value
in my opinion, but if it lines up with some other support/resistance line
over which I'm hesitating, it might confirm it for me.
In general, and in the context of looking for a signal to go long or short
is concerned, I'll be looking for Fib to confirm something else, rather than
the other way around. However, once I have a signal, then it's Fib and only
Fib.
Did that make sense? :)
Andrew
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