Thread by @theBuoyantMan

No-nonsense guide to plotting fibonacci for intraday trading by TraderX:

These are various methods you can use to plot fibonacci. Plot them, observe the market, go over past intraday charts, plot and see how price has reacted, etc. Study them carefully over historical charts.

The point of this exercise is to show price action and how it reacts at various levels. Once you have an understanding of that, you can hone in on what appeals to you and start crafting your own methodology.

1.) Plot lines over the previous day's high/low. This is probably the most common technique, and usually provides decent support and resistance levels for the current day's action.
2.) Plot lines over the previous day's high/low to the opening day's low/high. This is what I use

the majority of the time as it takes into consideration the current day's open. I have tweaks for certain situations - for example, a gap that is still in the previous day's range (does not gap above/below the previous day's high/low) may dictate I only plot lines over the

previous day's high/low and ignore the open.
3.) Plot lines over the previous two (or three) day's high/low. This technique allows you to catch bigger moves, and can be used in conjunction with #1 and #2 if price blows past your initial target.

4.) Plot lines over the current day's first 15- (or 30-) minute high/low. This technique works for scalping on shorter timeframes. You will be surprised to see how price for the rest of the day reacts to support/resistance based on the opening range.

Go checkout traderx.blogspot.com - amazing wisdom nuggets for trading in there.