Fibonnaci indicates a likely US 30 retracement
Hi Guys. I believe one of the most powerful tools in any traders kit is the fibonnaci levels, whatever way one decides to use them. The attention paid to these levels means there are a great number of traders at those levels which allows for great trading opportunities in what is essentialy optimal trading zones or areas of value.
I find personally the 1.618 extension from swing high to low or low to high allows for nice risk reward opportunities when aligning with other confluence, which brings me to the current short trades I have entered on the US 30. I am neither bear or bull or whatever, rather swing trade price as it moves using the 1.618 extension as my area of value to wait and see what develops.
I find personally the 1.618 extension from swing high to low or low to high allows for nice risk reward opportunities when aligning with other confluence, which brings me to the current short trades I have entered on the US 30. I am neither bear or bull or whatever, rather swing trade price as it moves using the 1.618 extension as my area of value to wait and see what develops.
Double top 5 wick rejection and the swing high from august 22 to market bottom also extends 1.618 to this zone.
Entering short at this level or waiting on lower time frame for a rally back into the zone allows for really solid risk to reward swing trade with first profit taking at the lowwer blue horizontal zone which should see a resistance dupport flip and is 38.2 retracement of October 23 rally to current high and around 50ma and anchored vwap from the october low.
This is just my idea so please use your own judgement and manage risk.
Happy and safe trading.