I’m wondering if you can answer a question that I have given some thought for some time.

Do you find Fibonacci retracement useful? Has it worked for you or SMB in the past (and beyond what could be from simply random chance)?

I can’t find any studies with RELIABLE statistical analysis.

Good luck tmrw!

Thanks for your time.

I do not use Fibonacci levels. GMan will (see passage below). Most of the traders on our desk do not. But some use pivots. There is no right answer to using or not using them. Some swear by them others do not use them. We teach all of our traders to consider long-term and intraday technicals with each of their trading decisions. We ask our traders to be consistent with their technical analysis, noting the teachings of Adam Grimes, and consider multiple time frames, influenced by Brian Shannon’s work.

So you want to use Fibonacci levels and want a recommendation on where to learn about them? I offer this short passage from The PlayBook, with GMan answering a question from a Singapore trader as he was teaching his favorite setup The PullBack Trade.

Bella: You might say you are willing to make an investment in your trading with a first attempt loss. Okay, audience question. GMan, do you use Fibonacci for the retracements in the pullback?

GMan: Great question. I do keep Fibonacci levels in mind, as well as the tape. When the stock starts to turn, I use that information, and I will combine these technical indicators to make a better entry, which helps when putting on a bigger size. For example, if we stop at support for a Fibonacci level and the stock turns, I may decide to enter with more size.

Bella: If you are interested in learning about Fibonacci levels please read The Trading Book written by my friend Anne-Marie Baiynd.

You can be better tomorrow than you are today!