SPY - How to project fear if it had a number...
Updated
A special today... I just saw this and thought it was a good opportunity to show how I use Fibonacci and geometric symmetry to help do some projections.
Here are the steps for the SPY hourly charts currently...
1. Draw a Fibo retracement from the last high (22/7) to the last low (22/7)
2. Note that the rebound (currently) only got to the 0.5 (50%) Fibo retracement level. So, we expect and extension to the 1.5 (150%) level.
3. Draw an arrow line from the high to the low, duplicate it and shift it across to the last lower high, from the 50% retracement level (white Fibo retracement drawing). This is the rough estimation and extension.
4. In an opposing manner, draw the next Fibo retracement from the low on 14/7 to the high on 22/7. Clearly, this retracement is in the opposing direction, extension to the upside. This is the grey Fibo retracement.
5. Note how the confluence of the 0.618 (61.8% / 62%) level coincides and aligns with the opposing 50% Fib level? This confluence should increase the likelihood and significance of this support/resistance level.
6. Circle the spot. That is where it should happen. Usually it is an early estimate. For more accuracy, you can use Gann fans to help in determining the time lines forward. I find this useful.
Ta-da! Now we wait to see what happens over the next two days or so...
Have fun and do leave a comment if this is helpful, or just appears nonsense to you. Ask any question if you'd like!
First time I am doing something like this... hope you all enjoy it!
Cheers!
Here are the steps for the SPY hourly charts currently...
1. Draw a Fibo retracement from the last high (22/7) to the last low (22/7)
2. Note that the rebound (currently) only got to the 0.5 (50%) Fibo retracement level. So, we expect and extension to the 1.5 (150%) level.
3. Draw an arrow line from the high to the low, duplicate it and shift it across to the last lower high, from the 50% retracement level (white Fibo retracement drawing). This is the rough estimation and extension.
4. In an opposing manner, draw the next Fibo retracement from the low on 14/7 to the high on 22/7. Clearly, this retracement is in the opposing direction, extension to the upside. This is the grey Fibo retracement.
5. Note how the confluence of the 0.618 (61.8% / 62%) level coincides and aligns with the opposing 50% Fib level? This confluence should increase the likelihood and significance of this support/resistance level.
6. Circle the spot. That is where it should happen. Usually it is an early estimate. For more accuracy, you can use Gann fans to help in determining the time lines forward. I find this useful.
Ta-da! Now we wait to see what happens over the next two days or so...
Have fun and do leave a comment if this is helpful, or just appears nonsense to you. Ask any question if you'd like!
First time I am doing something like this... hope you all enjoy it!
Cheers!
Note
In a gap up reversal like yesterday, the projections and downtrend is off and cancelled. It went well... to the 1.38 level, then gapped up.-> Immediate trend change.
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