Why people consider fibonacci indicator a joke?

<p id="isPasted">One common criticism is that the Fibonacci indicator is subjective and prone to interpretation. The process of drawing Fibonacci levels involves identifying potential support and resistance levels based on ratios derived from the Fibonacci sequence. Since the selection and placement of these levels are not based on precise mathematical formulas, critics argue that different traders may draw Fibonacci levels in slightly different ways, leading to inconsistency and unreliable results.</p><p>Another viewpoint is that the effectiveness of the Fibonacci indicator may be attributed to a self-fulfilling prophecy rather than any inherent predictive power. This argument suggests that because Fibonacci levels are widely known and utilized by many traders, their impact on price movements becomes a result of the collective actions of those traders. In other words, price movements align with Fibonacci levels not because of any inherent reliability, but because traders base their decisions on them, creating a self-fulfilling prophecy.</p>

<p>Some people are skeptical about the Fibonacci indicator because it relies on drawing lines and ratios based on certain numbers from a sequence. These lines are used to predict where prices might go in financial markets. However, not everyone agrees on how to draw these lines, so it can be a bit subjective. Also, there's no strong proof that they work all the time. Some think they work because many traders use them, so it becomes a self-fulfilling prediction. In other words, if enough people believe in it and act on it, it can influence the market, even if the math behind it isn't always clear-cut. Despite this skepticism, some traders still find Fibonacci analysis helpful when combined with other tools for making trading decisions.</p>

<p id="isPasted">First, the Fibonacci indicator is based on a mathematical sequence that was discovered by Leonardo Fibonacci in the 13th century. This sequence is often used to predict the future behavior of financial markets, but there is no scientific evidence to support the claim that it is effective.</p><p>Second, the Fibonacci indicator is very subjective. There is no one "right" way to use the indicator, and different traders will often interpret the same data in different ways. This can lead to a lot of confusion and frustration, and it can be difficult to make consistent profits using the indicator.</p><p>Finally, the Fibonacci indicator is often used as a self-fulfilling prophecy. This means that traders who believe in the indicator will be more likely to see support and resistance levels at Fibonacci retracement levels, even if these levels are not actually there. This can create a false sense of security and lead to losses.</p><p>Overall, the Fibonacci indicator is a controversial tool in forex trading. There is no guarantee that it will be effective, and it can be difficult to use consistently. If you are considering using the Fibonacci indicator, it is important to do your research and understand its limitations.</p><p>Here are some of the reasons why some traders believe that the Fibonacci indicator is a joke:</p><ul><li><p>It is based on a mathematical sequence that has no scientific basis for predicting future market behavior.</p></li><li><p>It is subjective and can be interpreted in different ways by different traders.</p></li><li><p>It can be used as a self-fulfilling prophecy,&nbsp;creating false levels of support and resistance.</p></li></ul><p>If you are considering using the Fibonacci indicator, it is important to be aware of its limitations and to use it with caution.</p>