Fibonacci's I'm going to start by saying what I might say can and will be wrong to some or all readers. The reason I say this is because we all use it differently and that it's wrong to say there's only one way to use it. From what I was taught it was a ratio of numbers that are perfect in nature. If you read my other thread about my first trading system's you'll know that I was first exposed to Fibonacci from one of my father's friends. However due to my other primary focus at the time a lot of it I cannot remember. The sequence of my fib's go are 0%,23.6%,38.2%, 50%, 61.8% or as I refer to it the 62, 70.7%, 78.6% or the 78 as I refer to it, 100%, 126%, 161.8% (May not be there), 200%, 261.8%, and the 423.6%. Although it's not listed and I rarely use it anymore but the 90% is also there because I used to use it as an ejection point to get out of a trade if it exceeds the 90% however with the dynamic nature of trading I hardly use it nowadays and it's there for nostalgia. To be more specific I use the Fibonacci retracement tool and I use it almost exclusively for my entries and my exits. _____________________________________________________________________ Going Long The way I use it is as follows: 1st Decide going long or short for example sake we're going long. 2nd Since were going long I want to draw from the low to the high off a 15 min chart. Although any will do it's not exclusive to the 15min 3rd I will get my entry at the 78% this is a personal preference from what I was taught you are able to get in anywhere between the 62 to 78% 4th I will redraw since I am going long from most recent high to low so the same as #2 but opposite to see the extensions 126, 161, etc. These are the levels I look to target as plausible points of profit takings. Going Short 1st Decide going long or short for example sake we're going short. 2nd Since were going short I want to draw from the high to the low off a 15 min chart. Although any will do it's not exclusive to the 15min 3rd I will get my entry at the 78% this is a personal preference from what I was taught you are able to get in anywhere between the 62 to 78% 4th I will redraw since I am going short from most recent low to high so the same as #2 but opposite to see the extensions 126, 161, etc. These are the levels I look to target as plausible points of profit takings. Although I learned personally I cannot sit still for more than 2 months on a position the 423% is rarely used along with the 261%. However if my analysis shows I have the high or low I will hold for that or even longer for an attempt at an absurd amount, my record is I think 300? I'm not sure I have to recheck. The way I use this is exclusive to my style and therefore I am saying if you have a different method don't become infatuated or obsessed with the why and the how I use it. I'd much prefer you to adapt or modify what I do as your own personal means of being introduced to Fib's. _____________________________________________________________________ Blending One of the strongest thing's I would suggest if you want to venture on this route to try it out or to play with is BLEND IT WITH SOMETHING. I am a fan of the 3's... 3 concepts, 3 views, and 3some's <== I am a major fan of this! What I am trying to say is if something else you use in conjunction with another indicator agree's with this it just enhances your reasoning and some would argue stack more odds in your favour. For instance, you use this with your stochastics 10,3,3 it says there is a down trend imminent because there's a divergence in price and the stochastics and you have a level of resistance close /touched/ or slightly above and this just so happens to coincide when you see a down leg and it has a minor rally right into that area I described earlier (62 to 78). That's a good enough 3 for me to take a short. _____________________________________________________________________ Credit I believe in referencing and thanking those who have taught me and although I cannot go back that far in history to thank the originators I will thank those whom have had the pleasure of meeting. The follow is a thank you to those who have helped me perfect to a new level or have impacted me on this.. Rob Rosenberg ICT / Michael Huddleston Clark Lai / CEO Pinebaycm Wade Cowell / CFO Pinebaycm _____________________________________________________________________ I will add some images if there are some more interest or I have some time when I get back I will add some pictures and examples.