Identifying the BS

You can’t post pictures where prices happened to reverse at one of the fib lines and then say on look, fibs work! That’s exactly what fib “gurus” do and we’ve already established they don’t know what they’re talking about.

You had no idea ahead of time that price was going to reverse at the 78.6% line (or anywhere else), so showing an example where it actually does isn’t proving anything.

Once again, for everyone reading this site:

Fib “gurus” will post pictures and say “look, price reversed at these lines! Fibs are magic and they work!!!” Yet beforehand there is no way they could’ve possibly known which fib line price would reverse at, if any at all.

What I am talking about on this site does require any of that crap because it doesn’t even matter. I don’t claim to predict which line it will reverse at, nor do I care, because as long as price reverses at one of them (or even somewhere else), I will make money.

Why Are People So Stubborn?

I get messages from people telling me I’m doing it wrong.

Not a single one of these people has called live entries and exits.

Fibs in general:

It’s hocus pocus where people think the market is supposed to retrace at 38%, 50%, and 62% because those are magic numbers that resonate with universal frequency or some mumbo jumbo like that.

Here’s a case where price didn’t reverse at the retracement levels but buying them still would’ve been profitable:

big trade

This Method Vs. “Fib Guru’s” Nonsense

Let me try to explain this one more time.

Fib Gurus say – “Price reverses at fib numbers.” Yet they never give any specifics for which of the fib numbers price reverses at, or why. If it works, they claim to be gurus. If it doesn’t work, they make up excuses. If you ask them “how come sometimes it reverses at 38% and sometimes at 50% and other times at some non-fib level?” they will reply with vague bullshit about the ratio of a seashells spiral or something.

I say – “If price is more likely to reverse at a fib level (which fib traders claim is the case) then buy at all 3, and it eliminates having to pick which one it will reverse at.” I don’t know about you, but I suck at picking tops and bottoms. I’d hate to buy at 38.2% and then have price go down to 61% and I get stopped out. I’d also hate to be preparing to buy at 50% but price decided to reverse at 38.2% and I never even entered.

This way, if price reverses at any of the fib levels (which is what fib traders believe will happen), you will make money.

What is so hard to understand about that?

I said conventional fib theory is hocus pocus BS. But this method is designed to take advantage of the fib numbers that price supposedly reverses at.

A Great Example of Trading “Psychology”

You’ve probably spent some time on various trading forums.  Have you ever noticed that:

– Threads with vague “methods” go on for dozens of pages. Look at all the crap on the forums where people are vague but don’t give enough specifics to actually have a complete system.  I don’t have to name names because you’ve seen what I’m talking about.  Or the (other) fib threads with all the after-the-fact charts posted. “OMG I HAVE TO STUDY THE MYSTICAL NATURE FIBONACCI SEASHELL SEQUENCE OF LIFE!!! SEASHELLS ARE DIRECTLY APPLICABLE TO TRADING!!!”

– This site gave everything up front with no BS, no guru story, no nothing.  Well, the only thing I left open for interpretation was how many lots to buy at each position. But that’s gonna depend on you and also on how wide the gap is from the 0 line to the 100 line, because it’s going to vary based on the size of the trend. Your position size for a span of 10 points might be different from on a span of 50 points because the total dollar risk would be different, then.

Note – I’m not responsible for any losses. But if price retraces at fib numbers, like people claim, this method should make a lot of money.