Is Fibonacci retracement reliable?

 Is Fibonacci retracement reliable?

Is Fibonacci retracement reliable?

To this day, the Fibonacci I have used is the Fibonacci retracement for the following reasons:

·         Simple

Fibonacci retracement indicator is a simple indicator that helps me determine when prices are expected to reverse direction. I am an amateur forex trader who relies on a buy low sell high strategy so that I will always target sell entries when the price moves high bullish and aim for entry buy when the price moves very deep bearish.

·         Often gives the right signals

There are several important levels in the Fibonacci retracement that I often rely on, namely levels 50, 61.8, and 38.2. Often when the price touches one of these levels it will immediately reverse direction. So that helps me in getting profit. But the signal will be much better if Fibonacci is installed on large time frame charts such as H4 or daily.

 

Conclusion:

Because my needs have been met using the Fibonacci retracement indicator, I don't need to try to study other types of Fibonacci indicators such as span to timezone. It's been more than a year that I no longer trade using the Fibonacci retracement indicator because trading without using indicators looks more attractive and makes the chart look cleaner.

Even if I'm honest to this day I have never found a successful Forex trader or stock trader who taught me to use the Fibonacci indicator. All successful Forex traders learn about the fundamental data of a country's economy. Just like George Sores who succeeded in destroying the British Central Bank, he did so based on fundamental analysis of the economic data of the UK and Germany. Until he finally found that the German economy was much better off, he decided to gamble to buy the Deutsche Mark and sell the Pounds Sterling which gave him a huge profit.

Don't expect phenomenal events in the world of Forex trading to occur because of technical analysis such as Fibonacci retracements and other types. Because something easy and cheap to do in trading usually has no significant effect.

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