Wow, I didn’t think I would ever make less than four trades a day again! But, it was a pretty sucky range-bound day again, and I didn’t find many exciting opportunities. Especially when it looked like we’d go for a gap fill in the nasdaq early on, but it turned out to be a fake-out, I knew today was going to be slow.
I’ve done a bit more thinking and experimenting with fibonacci lines, and I am still working out what I think ‘my’ methodology will be. Right now I’m leaning heavily on OONR7’s method as a starting point. I am really loving throwing fibs on PnF charts, which keeps them out of my way on the 3-minute charts I watch. For the videos I’m drawing them into the 3-minute charts so they’re visible.
Anyway, here’s the video for today:
One thing about that CHB trade today is that it was a pretty “V”-shaped reversal after the retracement, which I feel is generally less reliable. That’s another reason I decided to bail early. I think a more rounded turnaround is generally a better bet.
August 22nd, 2007 at 4:52 pm
nice CHB trade. Glad to see you using fibonacci although if you find out what the real significance of the fibonacci levels in regards to trading… definitely let me know :)
All I know is that it can be counted on. I’ve looked at chart after chart after chart and the 38.2, 50 and 61.8 are key levels of support or resistance… at least intraday. Add increasing volume to the mix and it makes for a higher probability trade. In the end… that’s all I’m looking, more probability in my favor. It’s not perfect, there are failures… but it’s fairly easy to understand. My next task is to figure out a high probability exit strategy.