Again, this is my personal experience, personal opinion. Some people swear that Fibonacci retracement is very, very useful for them. From a “worldview”, from a personal belief perspective, is like asking me, and say, “Phillip, do you believe that God exists?” Okay, so in a way when you talk about, “Phillip, do you think that Fibonacci retracement is helpful?” I would say that: To me, Fibonacci retracement, Yes. in a scientific angle where we are talking about the proportion ratio of objects or things in real life that can be scientifically classified. Yes, that might be actually useful. But for my personal angle, looking at it from a trading perspective, trading is all about humans, all about emotions, it’s all about behaviors. So from that angle, I don’t really believe that having a specific ratio or pullback actually does help you.
Okay, I would say that maybe it just helps give you another way of identifying support resistance level. But of course, given a choice, if I can only choose between Fibonacci retracement and identifying key horizontal support resistance level, just by looking at where the turnaround points are, I rather use the turnaround points to look at key support resistance level, rather than using Fibonacci retracement. Okay, and I really wouldn’t suggest you to use both at the same time because it will only mean that you end up having really many lines being drawn on the chart, okay. And you might end up confusing even more.
So my suggestion is either you use Fibonacci or you just use the standard, my usual way of identifying the price level just by looking at a price action itself. Okay, so that’s basically my suggestion. Some people swear by using Fibonacci. Personally, I don’t find it helpful for me and that’s the reason why I don’t use it.
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