Technical analysis is science plus art. As a technical trader, you will always have to use your discretion when it comes to finally pulling the trigger. No indicator is 100% accurate. Most indicators are lagging in nature meaning they always give a signal when the market move is almost midway. However, there are certain indicators that are leading. But you will need to use discretion when using this indicator. Read this Yahoo Finance article on how to use the fibonacci sequence in your trading.