I added to my shares position for the thesis and long term investment portfolio. It's a good company that should be around in 10 years which is my foremost consideration for investment. I also took short term options to play the run up to on 4/29.
Discord Trading Community: https://discord.gg/eDfhKvS5AC
I have been learning about the Ichimoku Cloud strategy and I am curious about the duration of the 50% retracement. Is it usually 0.5 times the actual run up or does it vary by a lot.
I know that some traders based a lot of their analysis on time. W.D. Gann was the master that really established timing as just important as price. I have studied his works but nothing has definitively stuck out to me and I've applied to my trading.
What I find is that past levels of price action like confirming highs/lows are the additions to the 50% that I use and I am confident work. If you combine the 50% retracement with the ichimoku cloud you have a built-in timing element but this can oftentimes be very rigid if you use the same ichimoku settings. However, I think there is value in keeping things simple and consistent when it comes to pattern recognition so I do not try to curve fit my ichimoku any more than the classic settings.
In this case the 50% is not exactly where the price dipped to but it does look like it may hold today at that 50% level. Where price got to was the past highs of the last several months which is confirmation. Finally, prices still well above the ichimoku cloud which gives me a broad timing to watch this move play out rather than a concrete number like 0.5. These are the things that I consider in this trade in particular.
Tl;dr I take price action elements as guidance but do not try to make a rigid rule (unless it has to do with risk)