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Originally Posted by Summerset
Its time now to investigate the action at 3550 / 3650 - See PDF attached.
Note that April's monthly candle will close tommorow. And unless something extremely dramatic occurs today, we have a roboust BULL monthly candle confirmed.
As outlined in the attached PDF, My bias is for a mild retraction to occur. As All daily, weekly, & monthly Cci graphs are in trending mode, (as narrated in pdf), I will accumlate all fib retractions into the April monthly candle - if & when seen.
These are:-
23% @ 3577
38% @ 3521
50% @ 3484
61% @ 3444
78% @ 3394
I will not of course accumlate (buy) them all at once. But one X one on a weekly basis, using the methodology outlined in the attached pdf.
This should allow to mount a sizably position on each fib level, and bail out with little profits - or even at b/e- if the retraction continues. And hold in full force when the trend re-asserts.
The coming levels to accumlate this week are the <3521-77> area. The stops of course are below 3484. (prefreably 3460).
The retraction today didn't even make 23% (3577).
Comments welcome.
Profitable Trading.
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The Fib retrace method is an interesting way to diversify price albeit at some very serious assumption of risk. If your assumptions are wrong you have just acquired 4 times more risk that the single entry method. However, if you are right and the uptrend holds you will have a great blended price.
This is one of those philosophical issues of trading that does not carry an easy answer.
