How much do you guys buy into fibonacci retracements when analyzing charts? If you plot them over price trends there definately are patterns, but how much of this is confirmation bias? You can find patterns in anything if you look hard enough.
> Chart Thread
Example?
>>1382562
Here's one I made for CAT
also, a refresher
http://www.investopedia.com/articles/technical/04/033104.asp?ad=dirN&qo=investopediaSiteSearch&qsrc=0&o=40186
>>1382560
I find they do a good job of showing the rubber banding of resistance, but I only pay attention to them on intraday.
>>1382560
I literally don't even look at charts.
But then again, I trade long term options, so it's pretty meaningless to me.
>>1382567
Huh. I get the idea. Interesting but like you said, you can make such patterns fit almost any data if you try.
>>1382560
crucial for identifying entry exit points in currency trading where you're using large leverage
>>1382635
How do you trade long term options without use of charts? Would think it would be most useful here where you can use long term past trends, and all of those technical indicators to give a impression about how the stock you want to invest in acts in whatever types of markets.
Just seems like it'd be worth it but if you are making good money then god bless.
>>1382635
You can't trade long-term options without an ISDA jackass.
>>1382560
>You can find patterns in anything if you look hard enough.
Google image search geometric Brownian motion and try your Fibonacci mumbo jumbo on the first 10 charts that pop up.
>>1382742
Geometric Brownian motion relies on the stochastic deferential equation yeah? The same equation that money managers use to calculate expected return of a complete portfolio consisting of at least one risky asset and one risk-free asset? Where "drift" is referred to as "unsystematic risk" or "hedge-able risk"? I hope you can see where I'm going with this.
