the challenge with fibs in this context is the volume, or the lack of volume
the next question is, how much volume validates the fib which one precedes the other, without volume the what are the fibs based on ? of course the next dilemma (dilemna?) is the fib levels: between 0 and 100% there are some 9+ major fibs (as fractions the number is a double digit depending your reference)
so that poses the challenge of which level carries the greatest probability of being valid, where we are most likely to get a reverse swing or a signal that an endogenous pressure thru the auction is taking place...and hence we come back to the challenge of which leads volume or the fibs.....without volume the fibs lose their validity, but, mostly, the levels carry no significance unless the major fibs are pointed-to as most-oft swung points, but, again, the more common fibs require more volume to transact....but that still does not negate the most important point of fibs, that being, that fibs must fist first have a context, they must be relative to more than two end points, they need to sit within the context of a larger picture and the larger picture then needs one other altering or alternating data point, yep, volume!
...if Carl Sagan was to say everything between two end points is possible how do we know any of them have a higher probable swing point?
if we take the context of the fib placement in this instance it is most likely to be a spiral inwards, in other words it does not offer a perspective of a reverse swing in the largest weekly trend, it may only offer insight into more of the same, a fractal idea within a series of same-size fractal ideas (we commonly call this "more of the same chop!") so we dont know if a price swing, based on say the ATR, is purely concidental if say the popular 61.8 gets hit and sees a .015 move, in context and as a % that's a big move, but, really, without an impulsive volume-driven move the reaction to the level is really in the eyes of the trader not necessarily within the realm of an endogenous auction turnover
this would change if it could be proven that a series of these fractals were shown to build a base when the volume has become consistant within the current price zone and we could argue enough weak liquidity is leaving and enough bid liquidity is entering in stealth ......we would need to view this thru the lens of the 21 day and 13 week money flows which itself might display a fib quality as a %
of course, news release could make this post completely defunct (either price direction)
it's my experience that when the volume is running at it's highest relative to the ADT versus the price range that fibs tend to offer valid targets, again, only in relation to prior swings not in relation to itself....very rarely do i see fibs that offer valid data points when the ratio is relative to itself between 0 and 100 and even then when they do occur they offer no forward price length insight (as is the point of employing them)
a pre-coffee saturday morning 2c worth opnion