Both of them are working base on my back test but most of the time when the price hit 0.786 after a break of structure the price won't bounce drastically and break the weak high/low. Usually it only bounces a little and then it will go for reversal. I see 0.618 level as a healthy price action because these area is considered as a golden zone, and when the price reach this level usually the price creates new high/low. But now, I use only Fib as confluence to my strategy, I didn't use it as my main because I found out that the win rate is so low if you solely use this strategy.Yeah, Fibo points to important price levels, meaning we have 0.236, 0.382, 0.5, 0.618, 0.786 all as potential reversal zones. Other methods (RSI, MACD, Ichimoku, Price action...) should be used to determine important Fibo values.
Although the logarithmic scale gives you a better handle on the data and finding the true average value ~I think the Log scale does not tell us the average value, it only differs from the Ari scale in the parameters used: instead of Price, Log10(Price) will be used. This difference will cause some changes in the Fibo levels. The habit of using Fibo at which scale will depend on the habit of viewing price charts at which scale. I always view price charts on the Log scale, so I also prioritize using Fibo on the Log scale.
Both of them are working base on my back test but most of the time when the price hit 0.786 after a break of structure the price won't bounce drastically and break the weak high/low. Usually it only bounces a little and then it will go for reversal. I see 0.618 level as a healthy price action because these area is considered as a golden zone, and when the price reach this level usually the price creates new high/low. But now, I use only Fib as confluence to my strategy, I didn't use it as my main because I found out that the win rate is so low if you solely use this strategy.Agree, I also often use both scales, whichever Fibo zone coincides will be considered to play an important role in price fluctuations. I think the market is divided into two parts: those who use log scales and those who use regular scales. When both parts are interested in a price zone, that price zone will become important for future price fluctuations.
Agree, I also often use both scales, whichever Fibo zone coincides will be considered to play an important role in price fluctuations. I think the market is divided into two parts: those who use log scales and those who use regular scales. When both parts are interested in a price zone, that price zone will become important for future price fluctuations.Yeah, I also agree with your statement. In the market there are many people using Logs and many people using Ari scales, and they are all able to make profits in trading, proving that their approach is reasonable and valuable for generating trades. success. The combination of the two could suggest an important price zone as both sides expect a strong price movement at that price zone.
Both uses exist, which proves they both have their own value for traders.