Follow Price Action with Fibonacci Extensions - Pinball Style
Updated
Here I discuss how to play Fibonacci pinball with Apple. Fibonacci pinball is a sequence of fibonacci levels that are often seen in many instruments. Apple is currently showing a great example of this. Below I explain what I see; and how it can help provide targets as the instrument trends downward. After wave 5 completes I will show you how I will approach the next wave, so bookmark and stay tuned. It's crazy how accurate this method can be. It also has rules to know when a trade is invalidated and what to look for next.
current sequence: 5 wave impulse down, waves (1) and (2) are complete.
based on EW pinball, since wave i of (3) achieved a 32.2 -> 23.6 pullback, we can expect wave iii of 3 to extend to 100% extension of wave (1)
based on reaction of wave iii at 100% ext, look for resistance between 61.8% and 78.6% ext for wave iv of (3)
based on wave iii of 3 reaching 100%, we can expect wave v of 3 to reach 138.2 where it might turn up with an abc 3 wave correction.
be aware: wave iii of (3) can have alternate pattern which means all of the targets thereafter would have to be shifted an equal amount
if 3 wave correction is observed, look for wave (4) to complete between 78.6% and 100% extensions.
Wave (5) can begin and based on wave v of 3 reaching 138.2%, expect wave 5 to reach 176.4% at minimum.
to view wave (5) as complete, we would need to see a clear 3 or 5 wave move in the same degree; then reassess the sequence after the 3 or 5 up has completed.
current sequence: 5 wave impulse down, waves (1) and (2) are complete.
based on EW pinball, since wave i of (3) achieved a 32.2 -> 23.6 pullback, we can expect wave iii of 3 to extend to 100% extension of wave (1)
based on reaction of wave iii at 100% ext, look for resistance between 61.8% and 78.6% ext for wave iv of (3)
based on wave iii of 3 reaching 100%, we can expect wave v of 3 to reach 138.2 where it might turn up with an abc 3 wave correction.
be aware: wave iii of (3) can have alternate pattern which means all of the targets thereafter would have to be shifted an equal amount
if 3 wave correction is observed, look for wave (4) to complete between 78.6% and 100% extensions.
Wave (5) can begin and based on wave v of 3 reaching 138.2%, expect wave 5 to reach 176.4% at minimum.
to view wave (5) as complete, we would need to see a clear 3 or 5 wave move in the same degree; then reassess the sequence after the 3 or 5 up has completed.
Note
Note
UPDATE: wave v of (3) ended one fib ext level before the abc retrace. Therefore, we adjust the wave iv of 3 resistance zone to 100-123.6. If price reverses out of this zone to the downside, the most likely move down will be to the 200% ext around $150.00.
Watch for a sharp reversal for a good intermediate to long term trade. Stops will go beneath $150.00.
If a sharp reversal is not observed, a trade should not be taken.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.