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Retracement

Retracements and Expectations👨‍🏫 A students ask me to clarify a strategy I use when momentum trading using retracements in something I call the "Springboard Effect" The theory is, the deeper the retracement after the initial impulse move the less chance of an extension or "strength" of the continuation. I like to use the analogy of a Spring Board, (or diving board) and the stiffness of the board or the amount of "spring" it has 👇 🤔 Imagine we we have 4 different boards, all with a different amount of springs and we are going to drop the same amount of weight ⚖️ from the same height onto each board. When we drop the weight onto the board that has lots of springs, it wont retract far before launching the weight high 🚀 If we drop the weight on a board that has a less springs it will retract further, but have less strength to launch the weight very high 🛫 If we drop the weight onto a board that has barely any springs then it will retract a lot and then struggle to even launch the weight higher than the height it was dropped from 😤 In this analogy..... The height we dropped the weight from, is the top of the impulse move 📈 The different boards are the different fib retracement levels 🧮 The springs are the buyers at those levels 💵 How far it throws the weight is the strength or price action of the extension 💪 👉 A Bounce on the 382 tells us that there are plenty of buyers wanting to enter this market asap, this is a good sign that the extension could be strong. I like to target the 1.618 extension and or match it up to a level of resistance close by 👉 A bounce on the 50 tells me there is still a lot of bullish momentum but buyers where happy to buy it much lower, I'll still consider this bullish and target the 1.272 extension and match it up with some resistance close by or front run the level if I have to. 👉 A bounce on the 618 I dont really consider to be a strong move, I feel we will get a good bounce and may extend further, but I play close attention to the previous high incase we double top. I will look for things like candle stick reactions and use the CCI to spot divergence if momentum is lacking. 👉 A bounce on the 782 I consider a failure of the trend, I will expect buyers to still step in, but it will be a weak bounce and only really look to target other fib levels inside the retracement as potential resistance and this trade becomes more of a short term scalp. I hope this makes sense and adds some value to your trading, peace ✌️
OANDA:SPX500USDEducation
by DeNomics
9
NQ Power Range Report with FIB Ext - 7/8/2021 SessionContract - CME_MINI:NQU2021 - PR High: 14814.75 - PR Low: 14804.50 Evening Stats - Gap: = N/A - Session Open ATR: 164.85 - Volume: 17k - Open Int: 226k - Trend Grade: Bullish - From ATH: -0.5% (Rounded) Key Levels (Rounded - Think of these as a range) - Long: 15247 - Mid: 14676 - Short: 14104 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2021Short
by mv3trader5
NVAX to attack down trend line again, Watch carefully !NVAX is going to attack the down trend line once more after a short recovery and regaining some energy. Who wins the battle? lets follow and see. NVAX has reacted well to very strong support formed by 0.618 Retracement of last major rally and 0.786 projection of possible wave A of an ABC form of correction. This is shown on the chart. It is worth to note that chart is in logarithmic scale. I, myself think that NVAX is not able to break the line this time and it needs one more attack later. But who knows? Please take into consideration that : Market never follows our predictions , We are the one who should follow the market. Good luck my friends
NASDAQ:NVAX
by SaeedSajedi
5
AMC, May fall to 35 USD. Be cautious !AMC is too risky to go long now. 0.786 Retracement of last drop proved itself as a strong resistance. It may fall to 35 USD which is the golden ratio Retracement of last rally. please note that lower prices is also possible. Stochastic indicator has made a bearish reversal while its near overbought zone in weekly. I can strongly suggest that at least AMC is not offering an ideal setup to go long. My Recommendation : Do not go long at current prices unless you are a swing trader or you find any other strong reason. Good luck everyone.
NYSE:AMC
by SaeedSajedi
23
BTCUSDT - Do you want me to for the dips?#BTCUSDT 31.05.2021 1W Since April 14, when we closed the long position (63k USD), the BTCUSDT pair has suffered a -50% drop in 45 days. Although there are multiple reasons to technically understand the decline, it is also true that this is a young market and with certain participants that move huge volumes, called whales and krakens, which are unthinkable for a shrimp or plankton such as the ordinary citizen. When a wallet with a lot of bitcoins moves from cold addresses to an exchange, it is a sale alert that scares the market without even the sale itself having occurred. It is also healthy to remember that one of the essences of this market is high volatility and if you see difficulties as opportunities, it is something you can tolerate if you have always followed the advice not to invest beyond the money you can afford to lose. China has never liked BTC and from time to time some related news appears that later remains as an anecdote. About Musk and his media show is just that, a show and has contributed to a greater interest of the #nocoiner public in the world of crypto assets so any mention is positive, they say that bad publicity does not exist. Our forecast for the MA10 MA20 crossover was advanced a couple of weeks due to the price drop that has put MA10 on a tighter curve than expected. This supposes the exit of the bull market and the beginning of a crypto winter. Our RSI forecast has been correct as it is in the expected accumulation phase and a lateralization phase begins. The faces say it all. Taking the cross as 1 and a retracement in #FIBO there is a high support at 0.786 that allows a time of accumulation and stabilization after the drop of -50%. At the end of this icy season, a second big fall comes that breaks the 0.618 and tests the 0.5, to then start a new spring. We do a close up on the forecast to clarify. Point E is an alternative in case of looking to test resistance to 1 in the 49k. They always ask me at what price it is good to buy bitcoin, the answer is, learn to make your own decisions because every day is a good day to buy bitcoin (and ethereum).
by ari_el_5
3
to the 1.25 area as next target..then 1.26-1.28Expecting rise to 1.26-1.28 weekly; After supply has been in power for so long, demand started showing power ever since the week of the 24th May'21 and had kept increasing after that showing more presence, especially after it broke upside the 1.21 area. On the daily - From the 15 June to the to the 16th June price moved up to the 1.25 area on increasing considering demand. Then from the 21/06 to the 23/06 made a retracement to 1.22 and showed signs of supply weakening with some absorption of it for again after moving it to the 1.25. Which long-term makes me bearish but on the short term expecting a re-touch back to 1.25 and 1.26-1.28 zone as next target at the break upside 1.25 on a SOS
Long
by bibsz
1
WISH is on the way to make a huge move. We never gonna miss !!WISH is clearly offering a golden opportunity to go long. Stock beautifully completed a 5 declining waves and has started a new motive wave. So far it has completed it's wave 1 of new impulse and more than likely has completed wave 1 of 3 as well and currently is making its wave 2 of 3 which may ends at proposed buy zone shown on the chart corresponding to 0.5 to 0.618 Retracement levels. What all these means? We are ready to catch a golden move ! There are some moments in the market that there should be no more hesitation and thinking. I believe that wish is offering one of those moments. But please take it into consideration that we trade based on facts not hopes and wishes. If you opened the position stick to your stop loss objectively. Wish you huge profits my friends!
WLong
by SaeedSajedi
14