FUD Factor...
FUD = opportunity. Now, more than ever is when you rely on technical analysis. Where are the fibs? Where's the support? Where are buyers likely to defend? Where are the Algos switching from long to short..?
This is a good example; We've tagged the 100% alternate price projection (app). Or a-b = b-c. And, the 38.2 retracement. I'm a buyer of (half of my position) here with a stop below the 61.8 and the 1.618 app. More conservative traders can wait for the second buy at the 50% which lines up with the previous resistance of the swing high noted with the yellow dashed line. The stop needs plenty of room here in case this keeps rolling lower. There's likely support at the previous swing highs. Risk-to-reward here of 2.3-to-1 on the first target and 3.68-to-1 on the second target. This is an aggressive trade so, as with everything this week, keep the size appropriate for your account. There's much opportunity in the air but an equal amount of risk. Money management makes the difference. Stops will get hit. Expect it... But don't let it keep you from pulling the trigger.
This is a good example; We've tagged the 100% alternate price projection (app). Or a-b = b-c. And, the 38.2 retracement. I'm a buyer of (half of my position) here with a stop below the 61.8 and the 1.618 app. More conservative traders can wait for the second buy at the 50% which lines up with the previous resistance of the swing high noted with the yellow dashed line. The stop needs plenty of room here in case this keeps rolling lower. There's likely support at the previous swing highs. Risk-to-reward here of 2.3-to-1 on the first target and 3.68-to-1 on the second target. This is an aggressive trade so, as with everything this week, keep the size appropriate for your account. There's much opportunity in the air but an equal amount of risk. Money management makes the difference. Stops will get hit. Expect it... But don't let it keep you from pulling the trigger.
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