Fibonacci levels are indeed highly underrated indicators. In my observation and experience, a significant portion (90% to 95%) of various instruments and indices form support and resistance levels based on Fibonacci. Here is an example of Nifty adhering to it.
While it’s true that many are already familiar with this, there might be others who can find it useful and valuable.
Good day!
But how do you know which levels would be respected?
Nobody really knows what works in the market. That’s the truth.
Fibonacci isn’t magic. It’s just a pattern. Any indicator only works if you believe in it. It’s about conviction more than technicals.
You can even draw random lines and the market will respect some of them.
End of the day, you are your own system.
What you become during the process is the actual “trading system.”
If Fib helps you, good. If not, it’s just lines.
