The key is to develop an understanding of how other traders are applying Fibonacci analysis.  Target selection is also important.  If past price movements of a stock appear to conform to Fibonacci predictions, then it is likely that traders using Fibonacci analysis are active in the trading of that particular stock.  This in turn improves the odds that Fibonacci analysis will be effective in predicting the future movements of that stock.  Applied with a thorough understanding of how and where other traders are using it, Fibonacci retracements and extensions can be solid enhancer of trading profits.