Why doesn't Fibonacci retrecment work on every wave ?

[suyuvu]

What waves can we make sure the Fibonacci retrecmen is working properly?

 

[jlemon]

Its a tough question to answer. Look for price action and rejection from fibonacci levels.

 

[Jonathan Lee]

To ensure Fibonacci retracement works, identify a clear impulse wave (strong move) followed by a corrective wave (pullback). Measure the retracement from the high to low (or vice versa) of the impulse. Look for price action or candlestick patterns at key levels (38.2%, 50%, 61.8%) to confirm the retracement before entering a trade.

 

[suyuvu]

To ensure Fibonacci retracement works, identify a clear impulse wave (strong move) followed by a corrective wave (pullback). Measure the retracement from the high to low (or vice versa) of the impulse. Look for price action or candlestick patterns at key levels (38.2%, 50%, 61.8%) to confirm the retracement before entering a trade.

Thank you

 

[Astute]

There is no perfect system or method when it comes to trading. The edge lies in knowing that it should work more times than not.

 

[Jason Libson]

To ensure Fibonacci retracement works, identify a clear impulse wave (strong move) followed by a corrective wave (pullback). Measure the retracement from the high to low (or vice versa) of the impulse. Look for price action or candlestick patterns at key levels (38.2%, 50%, 61.8%) to confirm the retracement before entering a trade.

Yes bro, Fibonacci retracements work best during clear trending waves. For an uptrend, use the swing low to swing high, and for a downtrend, use the swing high to swing low. The retracement levels (23.6%, 38.2%, 50%, 61.8%) often indicate potential reversal points in these trends.

 

[Fin_Trader]

The Fibonacci grid is a tool based on mathematical levels, but it does not provide exact predictions. The levels it creates are often useful, but they do not guarantee an exact price reversal. The market can break through the Fibonacci levels without reacting to them or without reversing in the expected direction. In other words, the Fibonacci grid helps to estimate the likely levels where the price may slow down or reverse, but this does not mean that the price will necessarily react to these levels.