rod178 said:
... any retrace / extension (say 67%) that limits risk and falls upon an Order Block, or whatever. The actual Fib Numbers are merely a comfortable delusion.
ok lets pick the magical ratio !
go to weekly chart pick a large range and divided into 50% then divide 50% to 50% just like ICT equilibrium concept you will get the real S/R level !
just think it normally fibo level makes range percentage nothing else !
a 100% range divided into 62% 70.5% 79%
Price generally moves through the market in waves and Fibonacci can be thought of as a tool to measure this progress. This is important to us because the use of Fibonacci is so ubiquitous; many traders, including institutional traders, pay very close attention to these waves. It is important that we are able to clearly see the significant waves in whatever time frame we are studying. Recognizing the important swings is key to properly applying our Fibonacci tools to the charts. (copied from Dick Thompson article)
except 70.5%, 70.5% level was invented by ICT
if you have time to read : Forex Revolution, An Insider's Guide to the Real World of Foreign Exchange Trading - Peter Rosenstreich
you will see an interview with Joachim Herr
Joachim Herr is the head of risk management at BMW
International.
they use PPP equilibrium concept to hedge currency !
you cant imagine how power full it is !