Jamie, Do you think you do a post on how to properly use Fib's? It's a little unclear when to use the previous days extreme pts to present days pts or present day to present day etc.. Currently I trace several Fib. pts and see which ones fit best to the trade (very amateurish). Thank you very much.
Sounds like you are interested in Fib retracements as opposed to extensions.
If a stock gaps up, I use either the ORL or swing low, which ever of the two is lower, as my starting point.
If a stock doesn't take out the previous day high on the open, I use the previous day's low as my starting point.
I'll try to do a post on Fibs soon (too busy this week). But if you can provide me a specific example, it will help me understand what you're looking at.
What would be your Fib. pts for a stock that gapped up but didn't gap above the previous days high? Something like the DRYS today. No pressure on that post; I imagine its a ton of work to keep the blog going. Did you catch the POT also today? Thanks.
Not sure how to apply Fibs to DRYS today. But Thursday was a big move for DRYS. Then Friday it opens high but retraces. I would draw Fib retracement lines from Thursday low to Friday ORH and wait to see if price retraced a significant amount to setup a bounce.
On 15 min. it stopped at 62% retracement and carved out a hammer reversal.
Today's action is mainly an extension as price opened in the same range as Friday's ORH and did not retrace much.
Did not trade POT today as I had way too many phone calls. POT is a good example of Fib extension. After price closes above Friday's high, it immediately ascends to the 38% extension level using Friday's high and low as my base.
4 comments:
Jamie,
Do you think you do a post on how to properly use Fib's? It's a little unclear when to use the previous days extreme pts to present days pts or present day to present day etc.. Currently I trace several Fib. pts and see which ones fit best to the trade (very amateurish). Thank you very much.
Alex
Sounds like you are interested in Fib retracements as opposed to extensions.
If a stock gaps up, I use either the ORL or swing low, which ever of the two is lower, as my starting point.
If a stock doesn't take out the previous day high on the open, I use the previous day's low as my starting point.
I'll try to do a post on Fibs soon (too busy this week). But if you can provide me a specific example, it will help me understand what you're looking at.
Hey Jamie,
What would be your Fib. pts for a stock that gapped up but didn't gap above the previous days high? Something like the DRYS today. No pressure on that post; I imagine its a ton of work to keep the blog going. Did you catch the POT also today? Thanks.
Alex,
Not sure how to apply Fibs to DRYS today. But Thursday was a big move for DRYS. Then Friday it opens high but retraces. I would draw Fib retracement lines from Thursday low to Friday ORH and wait to see if price retraced a significant amount to setup a bounce.
On 15 min. it stopped at 62% retracement and carved out a hammer reversal.
Today's action is mainly an extension as price opened in the same range as Friday's ORH and did not retrace much.
Did not trade POT today as I had way too many phone calls. POT is a good example of Fib extension. After price closes above Friday's high, it immediately ascends to the 38% extension level using Friday's high and low as my base.
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