I own 4 shares in the S&P 500. I developed trading strategies to sell my shares and buy them back at key points using Fibonacci retracements. Best business ever. And if I leave it it still makes money. I’m nowhere near $500/month but learning to trade simply has taken me years and I’m very proud of my smol accomplishment.
What is the reasoning behind why Fibonacci retracements should work? Did you backtest it?
I am working on a program to backtest it. Honestly, I still have much to learn. I do things visually. So I take the little fib retracement chart tool in trading view and make the anchor at the beginning of a price movement and align the lines to the closing prices of significant support/resistance (defined mathematically as any 5 bars such that the the middle bar has the lowest low or highest high in like pyramid form.) If I see at least 3 lines of the fib retracement align, I consider the market to be demonstrating that pattern and I make a bet the market will reverse when it hits the highest fib line. This is much easier to see btw and I have a website where I’m going to write this out if you’re interested: https://seanneilan.com/ I have corresponding Python code that automates this strategy too that I intend to post once it’s ready.