Why I do not chart classical Fibonacci retracements during retracement periods:
Lately, I've been catching a lot of flack from other chartists regarding how I'm utilizing Fibonacci numbers in my charts. Classically, extensions are solely used for PPS predictions; and, granted I do exploit that feature. The most popular version of Fibonacci utility is called Fibonacci Retracement. Retracement is classically used to find "the bottom" from a line drawn off the top, to a bounce point.
While I do use this model for my personal charts here and there, I find them less useful than incorporating a bullish fan from the opposite end of the spectrum, waiting on a signal, and capitalizing on previous extension levels via these fans crossing said extension levels. I call this a fib pinch. Over the years, I've found these situations to have a profound effect on MACD turn around toward cross over before it begins to happen. I've found my charting technique to be the first indicator of bullishness, even with a seemingly terrible red candlestick day.
I'm not going to write a dissertation on why/how this works, but I do enjoy posting my charts for other to see. These are my go-to charts.
Do not explain to me how Fibonacci is not used in the way I use it.
I know.
I can only provide my own speculation and theories. I am not qualified to offer any
investment advice. Everything I post is my own opinion. DO YOUR OWN DD!!!!!!!
