If you go on a trip to a far-away place, wouldn't you want to use a highway map? Then why would you trade financials without a "TRADE-MAP"? I would like to introduce you to Don's "TRADE-MAP". It is a set of tools that I use to formulate opportunities. Your tools can surely be different, but stick to some core indicators that work for you over time. Here are the letters and what "TRADE-MAP" means to me (first the letters in TRADE):
1. T : Time and space (Fractals); 2. R : Repeating Cycles; 3. A : Advancing Trend; 4. D : Declining Trend; 5. E : Energy in Phase Forces.
Now the letters in MAP:
6. M : Momentum and Velocity; 7. A : Analysis of Structure; 8. P : Price Performance. There you have it: Don's personal "TRADE-MAP".
For an example, let's apply the TRADE-MAP approach to MO. Here is a continued analysis of what I published three days ago: After point "D" was established, I did a Fibonacci retracement of impulse leg D to A. MO did indeed sell down to the first key area, usually Fibonacci .618. The second strength in this chart is the Ichimoku Cloud in the background. If you look left to the mid-point of the chart, the cloud is rising as it moves to the right. The cloud movement higher is bullish . So too is the upside reversal at Fibonacci .618 ($60.47). These are both indications of STRENGTH ahead in MO."
The red arrow in the upper right shows the Fibonacci extension at 1.272 (where I think MO will pause, first price target of approximately $65.06). On this chart I also used Fibonacci time cycles (long vertical blue lines). Please note that these cycle lines did indeed show me "WHEN" significant events happened in MO. The next Fibonacci time cycle is due on April 18, 2016. Does this mean MO will keep hitting new highs until this date? Will Fibonacci 1.272 ($65.06) be hit on this date? Who knows? But, I now have a clue as to WHEN something is likely to happen. It forces me to anticipate change. Now, please move to Part 2 of this five part series. I hope this has been entertaining, informative, and helpful. Yours for better trading, Don.
1. T : Time and space (Fractals); 2. R : Repeating Cycles; 3. A : Advancing Trend; 4. D : Declining Trend; 5. E : Energy in Phase Forces.
Now the letters in MAP:
6. M : Momentum and Velocity; 7. A : Analysis of Structure; 8. P : Price Performance. There you have it: Don's personal "TRADE-MAP".
For an example, let's apply the TRADE-MAP approach to MO. Here is a continued analysis of what I published three days ago: After point "D" was established, I did a Fibonacci retracement of impulse leg D to A. MO did indeed sell down to the first key area, usually Fibonacci .618. The second strength in this chart is the Ichimoku Cloud in the background. If you look left to the mid-point of the chart, the cloud is rising as it moves to the right. The cloud movement higher is bullish . So too is the upside reversal at Fibonacci .618 ($60.47). These are both indications of STRENGTH ahead in MO."
The red arrow in the upper right shows the Fibonacci extension at 1.272 (where I think MO will pause, first price target of approximately $65.06). On this chart I also used Fibonacci time cycles (long vertical blue lines). Please note that these cycle lines did indeed show me "WHEN" significant events happened in MO. The next Fibonacci time cycle is due on April 18, 2016. Does this mean MO will keep hitting new highs until this date? Will Fibonacci 1.272 ($65.06) be hit on this date? Who knows? But, I now have a clue as to WHEN something is likely to happen. It forces me to anticipate change. Now, please move to Part 2 of this five part series. I hope this has been entertaining, informative, and helpful. Yours for better trading, Don.