[ninjacookies]

Originally Posted by jcardstore

I've been trying to figure out how the hell to use the fibs. Basically every technician I've read or podcasts I listen to or whatever they rave about it but it really just ends up with me drawing a bunch of pretty pictures on the chart

There's so many ways to use it, I don't think there's a real right or wrong answer since people have different time frames and trading strategies.

What I like to do is start with the daily chart.

Then look for the beginning of an uptrend or wave, then trace it all the way up to the all time high (wick, not the candle closes).

If you do it correctly, you should see the chart lining up pretty well with the support and resistance touches on the retracements.

Quick example:

https://www.tradingview.com/x/PLzmuFvg/

It's never an exact science, but gives you a general guideline of when to take profit or re-enter because the fibs usually line up with the stoch/rsi indicators.

Of course you'll have to constantly adjust if things break all time highs or lows...and that's where you'll have to use the fib extension tool.

Pretty straightforward once you experiment a bit.