Earlier today MaryJane made a short term call on-Light-Crude Oil Futures.
It was a very impressive piece of work. I analyzed what she did in a slightly different way.
Both techniques worked.
I started charting in 1983 (when I was age 33). Here is what many poor calls have taught me. A longer term perspective will help you on your short term trades.
In the-Light-Crude Oil Futures Chart above I used TWO FIBONACCI RETRACEMENT VIEWS to determine likely pivot points.
The Fibonacci array on the left is based on price. The Fibonacci array on the right is based on the Ichimoku Cloud.
Yes - the cloud has Fibonacci retracements just as price does.
When I see a simultaneous Fibonacci retracement of .618 for both price and cloud, this is a very powerful pivot point.
In this case, when MaryJane made her great call, I wanted to know the upside potential. The price started to jump at about $46.78.
Based on a one hour chart, the jump in price would end at $48.14 (Fib .618 on the hour chart).
Based on the "Two Fibs Don't Lie" chart above, I would anticipate the upside limit at $48.74 (price Fib .618) or $48.73 (cloud Fib .618).
The difference between $48.74 and $48.14 is sixty cents. I split the difference and add thirty cents to the lower figure.
My anticipated sell becomes $48.34. The PERFECT STORM called by MaryJane turned at this level.
When you understand longer term charts and how they impact your shorter term work, you will have an inside edge when using your indicators, pivot points, sigma placements, and / or any other techniques in your arsenal.
Special thanks to MaryJane.
Good luck to you in all your trades. Don.
It was a very impressive piece of work. I analyzed what she did in a slightly different way.
Both techniques worked.
I started charting in 1983 (when I was age 33). Here is what many poor calls have taught me. A longer term perspective will help you on your short term trades.
In the-Light-Crude Oil Futures Chart above I used TWO FIBONACCI RETRACEMENT VIEWS to determine likely pivot points.
The Fibonacci array on the left is based on price. The Fibonacci array on the right is based on the Ichimoku Cloud.
Yes - the cloud has Fibonacci retracements just as price does.
When I see a simultaneous Fibonacci retracement of .618 for both price and cloud, this is a very powerful pivot point.
In this case, when MaryJane made her great call, I wanted to know the upside potential. The price started to jump at about $46.78.
Based on a one hour chart, the jump in price would end at $48.14 (Fib .618 on the hour chart).
Based on the "Two Fibs Don't Lie" chart above, I would anticipate the upside limit at $48.74 (price Fib .618) or $48.73 (cloud Fib .618).
The difference between $48.74 and $48.14 is sixty cents. I split the difference and add thirty cents to the lower figure.
My anticipated sell becomes $48.34. The PERFECT STORM called by MaryJane turned at this level.
When you understand longer term charts and how they impact your shorter term work, you will have an inside edge when using your indicators, pivot points, sigma placements, and / or any other techniques in your arsenal.
Special thanks to MaryJane.
Good luck to you in all your trades. Don.