Use Fibonacci Retracements to Enhance Your Day Trading

By trader7757, 24 June, 2010, 1 Comment

Fibonacci retracements are one of the most talked about tools in a traders arsenal. Yet, they are consistently misused and poorly understood. Used properly, Fibonacci retracements can be a very valuable asset to your trading, but they must be use with precision and in the proper context.

Fibonacci Retracement and Extension – The Holy Grail in Trading!

By trader7757, 26 January, 2010, 2 Comments

After the market bounces back and takes a U turn at one of these retracement levels and rallies to the point D we say that the market has moved 27% above the original move AB or a total of 1.27%. Now if you want to become a serious trader no matter what market you trade, you should learn Fibonacci Retracement and Extension.

How Really Useful Are Fibonacci Retracements

By trader7757, 22 January, 2010, No Comment

So there you have it, the reason the Fibonacci ratios work is unclear, and I am unwilling to bestow mythic credibility based on the history of the ratio. On the other hand, there is no denying the market pays attention to these numbers. Whether I believe they are a self-fulfilling prophecy is irrelevant, because as traders we only deal in profitable trades and growing account balances. The “why” just doesn’t matter

ES Emini Day Trading: Detailed ES Trading Chart

By trader7757, 23 November, 2009, No Comment

Chart courtesy of AMP Trading, get a free demo account and paper trade.

detailed ES Emini day trading chart ESZ9 for Nov 23, 2009

Well, the market started out with a great up move and then sort of unwound for the rest of the day. Notice that I put the Fibonacci replacements in the chart and the market found support at the 61.8% level and then hovered above and below that level for quite some time.

It was not an exciting day to trade, though I had to fight impulses as the market faded of the highs to stay and in the trade and let it ride. Not an easy thing for a devout scalper, but I managed to stick by my guns. The volume, as it has been for quite a while, was not overly impressive which, in my mind, doesn’t point to a terribly robust market. We shall see.

Is the NASDAQ Now in Thin Air?

By trader7757, 23 October, 2009, 1 Comment

Of the three major indexes we track: DOW, NASDAQ and the S&P 500, only the NASDAQ is in thin air.

What do I mean by thin air? So far the NASDAQ is the only index to make it past the 50% Fibonacci retracement levels as measured from the highs seen in 2007 and the lows that were made in March of this year.

Both the Dow and the S&P 500 have rallied strongly from their March lows but have not made it over the 50% retracement level.

Click here to see the video “Is the Nasdaq Now in Thin Air”

Many professional traders – myself included – are looking at the NASDAQ’s Fibonacci retracement as it represents a potentially key turning point for this year’s market.

While not all the pieces are in place to go short or get out of long positions, one of the first clues is being put in place today by the Japanese candlestick charts.

In my new video, I share with you the NASDAQ retracement levels, as well as one of the key components that could lead to a potential reversal to the downside.

As always, our videos are free to watch and there is no need to register.

Click here to see the video “Is the Nasdaq Now in Thin Air”

Enjoy the video, all the best.