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50%retracement

"Facebook can't possibly go lower" ...right?Facebook NASDAQ:FB going lower was something many people did not expect on February 3rd, 2022 after the huge drop on earnings. I am afraid that many investors and traders did not pay heed to the words of one of my favorite investors Peter Lynch that "a stock can always go lower." Now price is grinding down those expecting a quick bounce. Let's look at this event as a teachable moment for price action as well as how to express options trades in high Implied Volatility using Vertical Debit Spreads.
NASDAQ:METAShort
by norok
9
Price Action Important TodayI feel the need to express how today's price action is most significant. The FUB over Russia/Ukraine apparently abated overnight (if it was even a real threat to begin with) and that sparked a rally in equities. However, it only bring the market to a key Resistance level. Meanwhile the VIX, which times the market, is also at an inverse support. What happens today could likely define the price action of the week, the next weeks, and even farther. Trade wisely.
CME_MINI:ES1!
by norok
11
Finding Fractals in Fifties (Ethereum versus Bitcoin)Ethereum/Bitcoin BITFINEX:ETHBTC setup a nice trade a few days ago. The price action of the trend is a really interesting example of the fractal waves that price tends to make. Once traders can identify and chart these patterns they can find some very profitable trade entries! Many traders ask me "what is the BEST timeframe to trade?" or make the observation that they see similar patterns on different timeframes. This video is an esoteric look at how smaller movements fit into a bigger picture!
Short
by norok
Market at Critical Retracement LevelThe stock market has Retraced from the dip to the key level of 4500 I have been watching since the bottom last week. This makes today and possibly more days this week critical for where the market goes the rest of 2023. I am not in the habit of telling people how to manage their trades or investments but what I will say is that people need to wake up and pay attention. Audit your positions. If a positioned bothered you last week now is the time to address it. If you do think that there is some unacknowledged economic force at play and the market is going through "a big one" now is the time to express that thesis.
CME_MINI:ES1!
by norok
3
Case Study of 50% Retracements - BitcoinThis is one of the most interesting case studies of 50% Retracements together at once that I can remember that Bitcoin is demonstrating over the last week. The first Retracement Level was a rally off the recent low up to the time of the FOMC Meeting. The second was the Crash as JPow was speaking. The Current rally stopped at the 50% Retracement of the JPow speech. This goes in my log book for case studies and if you study price action I suggest you do the same.
BITFINEX:BTCUSD
by norok
11
Bitcoin correction over?No. In my post yesterday I noted the Spike Alert at the bottom which was both a tradable signal and gave Bulls optimism. With a positive up day the +2% gain in BITFINEX:BTCUSD has still not touched the first of 3 key milestones that would invalidate the persisting bearish trend. The two key Retracement Levels from swing trend to retest the low, 43840 and 45880, are yet to be touched. The most important level is 45880 which is a test to recapture the prior trading range. I would still not consider Bitcoin full bullish until recapturing 50k. As it stands now the Daily timeframe remains full trend bearish with the highest probability to continue in that direction.
BITFINEX:BTCUSD
by norok
7
Which is the STRONGEST cryptocurrency (this week)?Earlier I took and posted a short trade on Ethereum BITFINEX:ETHUSD . As the trade plays out and I watch other cryptocurrencies in the market there is an interesting divergence. Ethereum is selling off but it remains one of the stronger cryptocurrencies in this pullback by holding its gains. BITFINEX:BTCUSD has retraced the full 50% of yesterday's rally. Cryptocurrencies like Dogecoin BITFINEX:DOGEUSDLONGS are clearly weaker failing to hold the Retracement. Meanwhile some are stronger in the short term like Monero BITFINEX:XMRUSD which have gone on to break the rally high. A good principle is buy strength and sell weakness. This puts you in line with the trend. I would advise checking how your favorite cryptocurrency is handling today's price action.
BITFINEX:ETHUSDShort
by norok
1