positive market reaction, page-63

Sure I get quite a few fib trades wrong, but hell lot more right than wrong overall

Fibonacci levels are another of those self-prophesising signals. Every trader and his dog is looking for those 38.2, 50, 60.8% retrace levels and when it comes they start buying and altering the supply and demand and therefore the share price goes up. If it doesn't go up after the 38.2% due to downward pressure on TRUE supply/demand levels, they then do the same at the 50% and again at 60.8%. If you look back historically you'll often therefore see a higher proportion of bounces at these levels. If no trader had any knowledge of this theory you simply wouldn't see fibonacci bounce levels.

No problems following fib levels as long as you sell out quickly on the upswing and have tight stop-losses as there is no psychological or other logical reason for a share price to bounce at specific percentage levels.