V.15:11 (477-482) Using Fibonacci Ratios and Momentum by Thom Hartle

V.15:11 (477-482) Using Fibonacci Ratios and Momentum by Thom Hartle
Item# \V15\C11\USINGFI.PDF
Availability: In Stock

Product Description

Don't buy it here, but wait for a pullback. Are you familiar with that piece of sage advice? Or what about "I would wait and sell on a bounce"? What does this really mean? Where and when do you act? Here's one technique for calculating retracement levels using that tried-and-true favorite Fibonacci ratios, as well as using momentum to define the trend.

Markets trend in a zigzag manner: rallying, leveling off, and surging again, only to be hit by a wave of profit-taking before settling into a trading range, awaiting the next reason to advance or retreat. This activity carries on in the general direction of the trend, easily seen on a price chart. Technically, the trend should be considered up as long as the market unfolds with a series of higher lows and higher highs. Similarly, the trend is considered down if the price action is a series of lower lows, with lower highs before each new low. A market is considered not to be in a trend if the price movement manifests itself in a series of fits and starts or if it fails to sustain levels beyond the previous extreme points, often reversing and forming the range. During an uptrend, good traders will buy the pull-backs, positioning themselves with the trend, taking advantage of the marketís tendency to ebb and flow. When the market is in a downtrend, however, the strategy is to sell rallies, awaiting for the downtrend to resume.

*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.

Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order