The reason I’m not a fan of Fibonacci levels is that I find them too subjective, supposing you get a reversal candle at the 50% level how do you know that is the one you should take? You could have reversal signals at the 23. the 38, the 50, the 61.8 and even higher. So how do you choose? The way I look at it is if my levels line up with a 61.8 level that provides further confirmation because I know a lot of other traders look at that level for trades, ‘it’s known as the Golden Mean’. However if it’s not there I don’t worry about it.
I understand trading a confluence of Fib levels but to me that relies on a lot of other traders who are all trading fib levels and all putting in their trades at a particular level. That in itself means that confluences have value and add confirmation to the trade, but only because they are self-fulfilling prophesy.
So there is no harm in adding fib levels to my trading set-ups to see if other traders may be using them to trade those levels, however by themselves I think they can be misleading.