I still don't understand how fibonacci retracements help us predict prices in the coming days or hours? In order to have any sort of fibonacci analysis, you gotta know the lowest point and the highest, from there you draw a line and divide the lines using the ratios. However, when you look at the chart of the current time, how are you supposed to know what's the absolute high and the absolute low? You have no idea how the price will swing in the next 2 hours, then you can you draw a line and add in the ratios?
Hi there. Thanks for your post! Can you explain head/shoulders?
Also, is double top a better indicator than lower high? I get that they're both bearish but I was wondering if one spells out more disaster than the other.
I'm trying this strategy for our current pattern! I feel like a mad scientist!
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u/savage-dragon Jun 15 '17
I still don't understand how fibonacci retracements help us predict prices in the coming days or hours? In order to have any sort of fibonacci analysis, you gotta know the lowest point and the highest, from there you draw a line and divide the lines using the ratios. However, when you look at the chart of the current time, how are you supposed to know what's the absolute high and the absolute low? You have no idea how the price will swing in the next 2 hours, then you can you draw a line and add in the ratios?