DKNG crossed the creek of a persistent downward sloping supply line today after breaking above the .236 fibonacci level of the retracement shown on the chart. Anything above $48 is bullish and now that you have a decisive looking candle breaking out of the trendline on the daily, that only adds as further validation. The price is in the middle of our .236 to .382 fibonacci range, but there are local support levels that could be used as entry areas. For instance today we closed above $50.58, an area that corresponds with a 50% retracement of this range. Support above a 50% retracement is often bullish and could make for an entry for a long but keep in mind your lowest risk area will always be at the macro lower support which in this case would be at $48.06 (.236 fib level).
I don't use this fib base extension much I only use it to confirm patterns and that is it I Just find it confusing to figure out when to start tracing it. How often do you actually trade-off the Fib?
TradeVibez
⋅
@dfiguere yes it is best to use fib retracement in conjunction with other indicators (patterns, volume, divergences, etc).. The Fibonacci sequence is already mathematically done for you so it makes as a great tool to validate the things you may or may not see on the chart already.
TradeVibez
⋅
@dfiguere using Fibonacci retracement is both simple and gray and the fact that it will make you a better traitor by giving you the skill of being able to spot the swings. When you spot the swings you can spot things like harmonics and Elliot waves. It just takes practice. When I use fibonacci retracement i typically start wirh the highest peak to the lowest. That’s all you do. You just retrace the swings that you spot in price and it reveals support and resistance areas for you. It’s good to plot your own support and resistance lines as well and look for confluence but since Fibonacci is mathematical I like to rely on the fib levels over my own.
dfiguere
⋅
@TradeVibez, you only select peak to peak, not the valley? I'm asking because my definition of the peak is like for example the top pf the mountain visually
TradeVibez
⋅
* simple and great
TradeVibez
⋅
@dfiguere apologies for some of the spelling errors. I’m in my car using talk to text and it does not allow me to delete or edit
dfiguere
⋅
@TradeVibez, thank you I just got back from vacation great to see you responded.
TradeVibez
⋅
Also please note that the smaller fib retracement you see on this chart is technically not the correct way to use the Fibonacci tool. That part was just me having some fun to see if those levels will be respected or not.